Great website!!

Regarding the Simplified R & D tax credit does this apply to S Corporations and its individual shareholders?

Thanks for your help!

Absolutely! An S Corporation would be eligible for the R & D Tax Credit but it flows to its individual shareholder throught the K-1.

Each Individual shareholder would then file his or her respective tax return and claim the R & D tax credit subject to having the necessary tax liablity. If the R & D tax credit is not deductible in any of the years, it is simply carried over to the following tax year and would be offset against the future tax liability.

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