Second Circuit examines eligibility of supplies for research credit

September 2012


"The US Court of Appeals for the Second Circuit has affirmed a Tax Court decision denying Union Carbide Corporation (UCC) a research credit under section 41 for the cost of certain supplies, agreeing with the Tax Court that the taxpayer was entitled to a credit only for supplies used to perform research, not for the cost of supplies that would have been used regardless of any research performed.

Note: The supplies issue was just one aspect of the Tax Court's 298-page opinion, which addressed many important issues related to the research credit. For prior discussion, see WNTS Insight, ""Union Carbide: Tax Court rejects many adverse IRS 'legacy positions' on research credit,"" May 21, 2009."

Contact us

Pam Olson
US Deputy Tax Leader & Washington National Tax Services Leader
Tel: +1 (202) 414 1401

Follow us