R&D Tax Credits Could. Assist Midstream Firms

摘要

Following more than a decade of gridlock, tax experts are hopeful that Congress this year could finally act on legislation to make the research and development tax credit a permanent fixture that would benefit midstream companies' bottom line. The midstream qualifies for the tax credit in a myriad of ways, Jonathan Forman, a principal at BDO USA LLP told Midstream Business. Developments related to corrosion prevention, leak prevention and detection and transfer efficiency are all possibilities. "Anything that makes the process faster, cheaper, better, more reliable, higher quality and better performing-any of that would qualify for the credit and generally has qualified for the credit," he said. The latest figures published by the IRS are current for 2011 and show that, overall, companies in all sectors saved $9.2 billion during that year by using the tax credit. Texas-based companies that qualify for the credit may apply for an additional credit.