Research and experimentation: an explanation of the new tax credit

Journal Article · Tue Jun 01 04:00:00 EDT 1982 · Oil Gas Tax Q.; (United States)

OSTI ID:6389759

Goodman, C G

On August 13, 1981, a new 25% incremental research and experimentation tax credit was passed into law as a part of the Economic Recovery Tax Act of 1981. This credit was provided in addition to the deductions available under Section 174 of the Internal Revenue Code. Congress intended this new credit to encourage the manufacture of new products and to stimulate the development and application of new techniques and equipment to production. There may be many oil and gas companies engaged in research and development who are not aware of this tax credit. Since substantial resources are required for this type of activity, financial planning will be essential to maximize any benefits that may be derived from the credit. No regulations implementing this statutory provision have been promulgated; however, this article sets forth the basic provisions of the credit and incorporates the legislative history to explain many of its otherwise ambiguous terms.

• Research Organization: Mitchell Energy Corp., Woodlands, TX
• OSTI ID: 6389759
• Journal Information: Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 30:4; ISSN OGTQD
• Country of Publication: United States
• Language: English

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