Consider the Research Tax Credit in M&A Deals
6 Pages Posted: 18 Jul 2008
Date Written: July 3, 2008
Our tax laws include a number of provisions that attempt to prevent taxpayers from buying and selling business tax attributes. Notwithstanding these provisions, taxpayers may still buy and sell businesses with the aim of increasing their own research and development tax credits. This presents taxpayers with some unique tax planning opportunities, and potential tax pitfalls. This article describes a few of these opportunities and pitfalls.
Keywords: research tax credit, Section 41, R&D tax credit, research and experimentation
JEL Classification: H25
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