Final Regulations Simplify Rules for Electing Reduced Research Tax Credit

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IRS issues final regulations (T.D. 9539) that simplify how taxpayers elect to claim the reduced research tax credit. The regulations simplify the Section 280C(c)(3) election by allowing taxpayers to make the reduced credit election on Form 6765, Credit for Increasing Research Activities. Before these regulations, taxpayers had to claim the reduced credit on the original return, which meant knowing the dollar amount of the research credit, Jim Shanahan, a partner at PricewaterhouseCoopers LLC in Washington, D.C., tells BNA.