Research tax credit extended for two years in financial rescue legislation
Pharma and life sciences tax news - Vol 7, No. 12
President Bush has signed into law the financial rescue-tax extenders bill (H.R. 1424) cleared October 3rd, 2008 by the House. The bill, as enacted, includes a provision that retroactively extends the research tax credit. Specifically, the legislation:
- Extends the research credit retroactively to January 1, 2008, for two years;
- Modifies the Alternative Simplified Credit ("ASC") by increasing the rate from 12% to 14% for taxable years ending in 2009 (taxable years ending(ed) in 2008 remain at 12%);
- Terminates the Alternative Incremental Research Credit ("AIRC") for taxable years beginning after December 31, 2008.
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