US House Passes Bill to Increase and Make Permanent the R&D Tax Credit

by Michael J. Devereux II, Mueller Prost

On May 20, The US House of Representatives passed H.R. 880, the American Research & Competitiveness Act of 2015, by a vote of 274-145.

H.R. 880 makes permanent the Alternative Simplified Credit (ASC) for calculating the Credit for Increasing Research Activities, and it increase the ASC credit amount to 20 percent of the research expenditures that exceed 50 percent of the average research expenditures for the prior three tax years.

In addition, the bill revives and makes permanent the 2010 tax provision that allows eligible small businesses to offset the Alternative Minimum Tax (AMT).

Michael J. Devereux II, CPA, is a partner and director of manufacturing and distribution services at Mueller Prost, a CPA and Business Advisory firm. His primary focus is on tax incentives available to manufacturers. Mueller Prost’s Tax Incentives Group is nationally recognized and has assisted hundreds of companies in the manufacturing sector to identify and utilize these incentives. Mueller Prost is a member of MAPP and offers MAPP members three hours of complimentary tax and accounting advice. For more information, call 314.862.2070 or email