Evaluating the Accelerated Research and AMT Credits Election Under Section 168(k)(4)

Journal of Taxation, Jun 2009, Vol. 110, Issue 6, p333-344, 10p

19 Pages Posted: 25 Nov 2013 Last revised: 27 Dec 2013

See all articles by John Everett

John Everett

Virginia Commonwealth University (VCU) - Department of Accounting

Cherie Hennig

University of North Carolina (UNC) at Wilmington - Department of Accountancy and Business Law

William A. Raabe

University of Wisconsin - Whitewater - College of Business and Economics

Date Written: June 1, 2009

Abstract

The article focuses on the evaluation of the accelerated research and alternative minimum tax (AMT) credits election in the U.S. under Section 168(K) (4). It says that Section 168(K) (4) provides a special election for corporations to monetize certain pre-2006 research credit and AMT credits in lieu of Section 168(k) bonus depreciation and Modified Accelerated Cost Recovery System (MACRS) recovery. The election could also be applied for profitable companies, but they must be aware that this election is subject for a tax cost as property that become operational during the nine-month window of 2008 or the 12-month window of 2009 are not allowable for bonus depreciation.

Keywords: PROPERTY tax, MODIFIED accelerated cost recovery system, TAX credits, CORPORATIONS -- Taxation, ALTERNATIVE minimum tax -- Law & legislation, PROPERTY tax credit LAW & legislation

JEL Classification: E62, H21, H22, H25, K34

Suggested Citation

Everett, John and Hennig, Cherie and Raabe, William A., Evaluating the Accelerated Research and AMT Credits Election Under Section 168(k)(4) (June 1, 2009). Journal of Taxation, Jun 2009, Vol. 110, Issue 6, p333-344, 10p. Available at SSRN: https://ssrn.com/abstract=1600764

John Everett

Virginia Commonwealth University (VCU) - Department of Accounting ( email )

Richmond, VA 23284
United States

Cherie Hennig

University of North Carolina (UNC) at Wilmington - Department of Accountancy and Business Law ( email )

601 S. College Road
Wilmington, NC 28403
United States

William A. Raabe (Contact Author)

University of Wisconsin - Whitewater - College of Business and Economics ( email )

Whitewater, WI 53190
United States

HOME PAGE: http://billraabetax.com

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