Supporters of research and development who file amended federal returns now can take the research and development alternative simplified credit (ASC) under a change in tax laws.
The change follows the U.S. Treasury Department and the Internal Revenue Service receiving requests to amend regulations so the ASC election would be allowed on amended returns. Previous regulations allowed companies to take the ASC only on original returns.
The former limitation conflicted with the regular R&D tax credit allowed for all open years (typically the previous three tax years). A taxpayer now can apply the rules and credit rate percentages to calculate the credit (commonly referred to as the regular credit) or make an election to apply the ASC rules and credit rate percentages to calculate the credit.