New Vermont R&D tax credit available in 2011

first_imgA new tax credit becomes available this year to eligible Vermont businesses for research and development investments made in Vermont starting Jan. 1, 2011.The tax credit was enacted by the Vermont General Assembly in 2009, but became effective for R&D expenditures made on or after Jan. 1, 2011. Availability of the tax credit relied on an extension the federal R&D tax credit, which occurred in December 2010 when President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. The federal R&D Tax Credit will be extended through December 2011.Vermont companies that make eligible research and development expenditures in Vermont can claim a tax credit equal to 30 percent of the federal tax credit allowed in the taxable year. Eligible research and development investments are the same as those defined by the federal R&D tax credit under Section 41(a) of the IRS Code, which are made in Vermont. If the tax credit cannot be applied in the year earned, the taxpayer can carry forward the credit for up to 10 years.‘Incentives like the Vermont R&D tax credit will encourage companies such as Bio Tek and Seldon Technologies to continue investing in R&D, add high paying jobs and help keep them competitive in the global marketplace,’ said Governor Shumlin.‘This is an exciting opportunity to help technology and innovation companies to grow here in Vermont,’ added Lawrence Miller, Secretary of the Vermont Agency of Commerce & Community Development. Source: Vermont Development Agency. 1.27.2011last_img

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