Conferees Kill Corporate AMT In Tax Bill, Freeing Use Of R&D Credits
Members of a tax reform bill conference committee repealed a controversial corporate alternative minimum tax, which will allow more device firms to take advantage of research & development tax credits. That was one of several changes made to help win the tax bill's final passage, anticipated this week.
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Among the very tight Republican and Democrat contests anticipated in this November’s US midterm elections are more than a few device industry-favored candidates, according to a review of the incumbents’ voting records and recent polling data.
With congressional options exhausted for 2017, industry hopes for IRS relief from the device-tax reality, either with a temporary waiver of deposit penalties or some broader tax-enforcement delay.
Under tax reform legislation recently passed by Congress, a 20% tax on products made in domestic territories will adversely affect the many device firms with Puerto Rican plants that currently enjoy a lower, 4% tax rate on profits. And a second tax provision usually relied upon by medtech companies, the R&D tax credit, also loses ground under the final Senate bill passed Dec. 2.