Section 174 Fix (sort of)? Early end of ERC? Bonus back up to 100%? The Tax Relief for American Families and Workers Act of 2024

by Patrick Smith on Thu Jan 18 2024

Why wouldn’t we want to get a new tax bill that impacts 2023 returns in 2024? It seems that Congress believes we may be due. The House Ways and Means Committee has announced a bipartisan bill to provide tax relief through renewal of some previously expired provisions, but pays for it with some changes to the Employee Retention Credit. The Tax Relief for American Families and Workers Act of 2024 does the following: * Revives 100% bonus depreciation for property placed in service after Dece

Tech companies should plan now for Section 174 capitalization for tax year 2023 and beyond

by Michael DePrima on Sun Dec 03 2023

## Will it get fixed? This time last year there was optimism that a 2022 year-end fix would be passed by Congress and Section 174 research capitalization would be deferred or eliminated altogether. Instead, Congress failed to act and tax year 2022 proved to be one of the most challenging for taxpayers subject to Section 174. Aside from the increases to taxable income that plagued taxpayers, the glaring lack of guidance under Section 174’s new capitalization regime made navigating the law cha

R&D payroll tax credit increases for 2023

by Michael DePrima on Tue Oct 17 2023

By Ginny Veit Companies performing research and development (R&D) activities in 2023 can take advantage of a supercharged R&D tax credit against their payroll taxes. The payroll credit can be a hugely valuable cash flow tool for early stage tech companies that should be part of your year-end planning discussions. ## The payroll tax election under Section 41(h) Beginning in 2016, qualified small businesses could elect to apply their R&D credit against employer payroll taxes in lieu of income

IRS releases new Section 174 research capitalization guidance

by Michael DePrima on Thu Oct 05 2023

IRS recently announced that proposed regulations are forthcoming under Section 174 while also providing interim guidance. Check out our latest article to see what this development means for tech companies: IRS to Propose Section 174 Regulations, Interim Guidance Issued : 2023 : Articles : Resources : CLA (CliftonLarsonAllen) (claconnect.com).

Happy ‘Techies’ Day

by Patrick Smith on Tue Oct 03 2023

Techies Day is a day set aside to celebrate individuals who are passionate about technology and the impact it has on society. This day is usually observed on October 3rd every year and provides an opportunity to acknowledge the contributions of techies to the development of various technological advancements. Techies are the individuals responsible for the development and maintenance of various technologies, ranging from software engineering to hardware development. They are the brains behind

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