The research and development (R&D) tax credit, originally enacted as part of the Economic Recovery Tax Act of 1981 to encourage companies to invest in R&D in the U.S., was modified and temporarily extended 16 times before being made permanent with the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). Learn how the R&D tax credit can possibly reduce your tax liability on a dollar-for-dollar basis as guest Ashley Thompson joins host Damien Martin to discuss the tax opportunity and share insights on how it applies to the craft beer industry.

TIMESTAMPS OF WHAT'S COVERED

• [ 02:19 ] Researching craft beer
• [ 07:22 ] Overview of the R&D tax credit
• [ 12:17 ] The perception that having fun isn't R&D
• [ 13:48 ] Types of expenses that qualify for the credit
• [ 19:29 ] What's a credit study?
• [ 24:37 ] Changes under the PATH Act
• [ 29:13 ] Election to use the credit against payroll taxes
• [ 30:13 ] Example of the credit for manufacturers of packaging equipment
• [ 33:04 ] Innovation and the R&D tax credit
• [ 35:31 ] Allocating resources when starting up or innovating
• [ 38:25 ] Gray areas and documentation

BIO FOR GUEST

Ashley Thompson leads the BKD R&D Tax Credit Services team. He has 18 years of experience helping clients claim federal and state R&D tax credits. He helps taxpayers who do not claim credits identify, document and calculate available credits and implement strategies to efficiently capture qualified research expenses on a go-forward basis. Ashley has significant experience defending R&D tax credit claims for both public and private companies before the IRS, including representation at the appellate level. He has worked with companies ranging in size from small closely held businesses to large multinational conglomerates.

Connect with Ashley on LinkedIn

ADDITIONAL RESOURCES

Mentioned in the episode

• Craft Brewers Conference
• Oaken Barrel Brewing Company

Articles on R&D tax credits

• Research & Development Tax Credits After Tax Reform
• Substantiating Your R&D Tax Credit Claim
• R&D Tax Credit Extended for 2015 and Beyond
• Research & Development Credits for Inbound Companies

Webinars on R&D tax credits

• The Improved R&D Tax Credit
• R&D Tax Credit – Software Development

GET MORE SIMPLY TAX

A complete archive of our episodes is available on our website and YouTube playlist.

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