June 6, 2018 11:30 AM
Does the mention of taxes make your heart skip a beat? Do you know what the new tax reform bill means for your company? Are you sure you’re taking advantage of all applicable tax credit opportunities?
Join OEN and KPMG for a high-level update around tax reform aimed at the non-tax professional. This session will cover R&D Tax Credit opportunities, how companies are planning to tackle the implementation, and what’s new in the tax law.
How can the recent changes to the research and development tax credit benefit you?
The R&D tax credit provides cash savings and a more immediate return on investment. A start-up company with annual gross receipts (revenue, interest income, royalties, etc.) of less than $5 million can now apply up to $250,000 of its R&D tax credit against its payroll tax. Furthermore, an eligible small business, a company with average gross receipts of $50 million, can use the credit to offset their alternative minimum tax.
What is the Research Tax Credit?
The research tax credit is an incentive to encourage investment in research and development of new or improved products or processes. The IRS’s definition of R&D activity is broad and applies to many industries. Eligible expenditures include in-house wages, supplies, and contract research/outside consulting. The credit benefit is equal to approximately 4-6% of eligible expenditures.
New ways to use the R&D tax credit
The new rules are particularly attractive for qualified small businesses that invest in new or improved products or processes, but were unable to obtain a tax benefit under the former R&D tax credit rules.
Previously the R&D credit could only be used by companies generating a profit and regular tax liability .These changes are aimed at making it easier for start-ups and small businesses that may not be yet be profitable or paying alternative minimum tax to benefit from the credit.
Who is eligible for the payroll tax opportunity?
Start-ups with less than $5 million in gross receipts and no more than 5 years of revenue.
Who is eligible for the Alternative Minimum Tax Opportunity?
Business with average gross receipts over the last 3 years of $50 million or less.
Registration begins at 11:30 a.m. The workshop will kick off at 12:00 p.m. with time for networking from 1:00 to 1:30 p.m. Lunch and beverages will be provided.
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Cost: Free for OEN members and $10 for non-members. If you prefer to tune into the webcast version, the cost is free for OEN members and $10 for non-members. *Sorry, no refunds*
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Tax Managing Director, Methods and Credits, KPMG
Tom oversees the Research Credit Services group for the Pacific Northwest, assisting clients with value-added research credit studies that drive cash tax savings and reduce effective tax rates. He works with all sizes of businesses from start-ups to large multi-national corporations.
Tax Managing Director, Business Tax Services, KPMG
Brett started his career with KPMG in 2001 and has broad experience in corporate and partnership tax matters. Prior to joining the Portland office, Brett worked in KPMG Spain’s Madrid office as the U.S. Tax Desk, and was previously part of KPMG’s Federal Tax practice.
Senior Tax Manager, State and Local Tax, KPMG
Vinh’s primary areas of practice are state income and indirect taxes. He serves a broad range of clients, including global leaders in the renewable energy and manufacturing industries, both publicly-traded corporations and private companies.