Research Tax Credit Extended for One Year

President Bush signed HR 1424 into law to extend the research tax credit. Since first enacted in 1981, the research tax credit has never been made a permanent part of our tax law. This most recent extension is valid for expenses paid or incurred on or before December 31, 2009. The law also increased the Alternative Simplified Credit (ASC) percentage to 14 percent (from 12 percent) for tax year 2009 and eliminates the Alternative Incremental Reseasrch Tax Credit (AISC) for tax years beginning after December 31, 2008.