NYS Changes QETC Tax Credit Rules for Partnerships and S Corporations

Earlier this month, New York State lawmakers completed one of the latest budgets in New York State history. The legislation that finalized the budget includes numerous tax law changes that will raise approximately $1 billion in state revenues. One significant change worth noting is to the Facilities, Operations and Training Credit for Qualified Emerging Technology Companies. Partnerships and New York State S Corporations that plan to claim this credit in 2010 and forward will now be limited $250,000 per year at the entity level. Prior law allowed these entities to pass through a total of more than $250,000 in credits to their partners and shareholders, making it possible for an individual taxpayer to claim the $250,000 maximum credit from one entity source. This change in the law will result in a decrease to the QETC credits that are available to individual taxpayers for the 2010 tax year.

For example, if a New York Limited Liability Company (LLC) generated $500,0 00 of QETC credits in 2009 and passed them through to its two equal members, each member would have received $250,000 of tax credits for that year, the maximum allowed to be claimed by an individual taxpayer. If that same LLC generates $500,000 of QETC credits in 2010, it may only pass through $250,000 of those credits to its members. For 2010, each member would only be able to claim $125,000 of credits, a significant reduction that may not have been anticipated by the members.

We encourage taxpayers to review their 2010 tax planning assumptions, as they may need to be modified before the end of 2010 to take this law change into account. Our Emerging Technology Team can assist business owners in quantifying the impact of this law change on their business, as well as their personal tax returns. Email our team with questions at emergingtechnologyteamefprotenberg [dot] com and click here to read more about QETC Tax Credits.

Permalink

EFP Rotenberg supports $7.6 Million of IRC Section 48D applications!

On March 23, 2010, President Obama signed the Patient Protection and Affordable Care Act. The act created Internal Revenue Code Section 48D, which provides for a tax credit or grant for qualified investments. This allows qualifying companies to claim a tax credit or receive a grant for a "Qualifying Therapeutic Discovery Project" (QTDP) during tax years 2009 and 2010. $1 Billion has been allocated under the program and the credit is equal to 50% of allowable expenses of the Qualifying Therapeutic Discovery Project. Compaies can also apply for a cash grant for the same amount instead of a credit.

EFP Rotenberg’s Emerging Technology Team provided application support to many companies across the Country. We served as both a knowledge resource and application reviewer for many companies. At a minimum, EFP Rotenberg aided in the application filings of over $7.6 Million.

Permalink

Albany passes NYS 2010-2011 Budget

August 4, 2010, NYS legislators passed the 2010-2011 fiscal budget which provides for significant changes for NYS individuals and business. Nearly every state resident, and non-residents with related activities within New York State, will be impacted by the Budget. Most notably for state businesses there are mandatory imposed tax credit deferrals, installment of several funds, loss of the timely filing credit for sales tax returns, and replacement of the Empire Zone Program (expired June 30, 2010) with the Excelsior Jobs Program Act.

The Excelsior Jobs Program Act requires planning schedules, annual performance reporting, credit caps determined from the submitted schedules, job creation thresholds and additional eligibility requirement. EFP Rotenberg, LLP is positioned to help your business apply for admittance to the Excelsior Program. We can support you with:

Eligibility identification for the Excelsior Jobs Program

Aggregation and communication of your businesses jobs plan

Aggregation and communication of your capital investment plan

Calculation and claim of your Federal R&D claim and identification of the NYS portion

Annual Performance Reporting

Excelsior Tax Credit Calculations for the Jobs/Investment/R&D/Real Property Components

And other program compliance reporting

Please contact us at: emergingtechnologyteamefprotenberg [dot] com

Permalink

We've Moved!

EFP Rotenberg and affiliated companies have now relocated their offices. Our new 40,000 sq. foot headquarters is located at 280 Kenneth Drive, Rochester, NY 14623. If you need directions, please call our main number at 585.427.8900.

Permalink

View all of our What’s Happening items.

Ready to get started?

Home

Public Company Practice

Partner-level attention, the hard work of our teams, and the flexible personal service we provide makes working with EFP Rotenberg a smooth and efficient experience. We work with more than 70 public companies. From audits to Sarbanes-Oxley compliance to preparation for going public, we can help. Read more.

Health Care Consulting

Health care accounting—complicated, highly regulated, constantly being targeted for cuts. It can be an overwhelming landscape for nursing home owners, hospital administrators, medical practices. Our professionals bring unparalleled savvy to audits, reimbursement reviews, and strategic planning. Read more.

Tax Practice

We have more tax partners, more tax expertise, and more tax business than any other regional firm in the Rochester | Finger Lakes | Southern Tier region. We regularly compete with the Big Four—and win. We deliver incredible value and rational fees. Our services include corporate tax outsourcing, expatriate and inpatriate tax preparation, tax provision preparation and tax planning and preparation. Read more.

Auditing

We provide a robust menu of traditional auditing and assurance services. Whether you need an audit for the bank, your donors, the government, or your potential business buyer, we can help. Read more.

Business Valuation

What is that closely-held business, stock, or intellectual property worth? A solid valuation can mean the difference between a good business decision and a risky one. We have a large staff of dedicated valuation experts, and we take full advantage of our in-house expertise in tax, accounting and financial advisory to deliver a broad-based perspective. Read more.

Specialty Auditing, Fraud & Forensics

Our affiliate company, StoneBridge Business Partners, has built a worldwide reputation for assuring needle-sharp accountability through specialty and third-party contract compliance auditing and fraud and forensics. We have a special focus on franchise and royalty compliance audits; distributor and supply chain audits. Read more about StoneBridge Business Partners.

International Business

The global village has arrived, and at any moment you may be at its epicenter. We’re experienced in valuing, planning, and executing cross-border transactions. Read more.

What to Know | What to Do

Accounting rules and regulations get more complex and change more rapidly. Suddenly international accounting standards matter. 24/7 is the norm. Business models come. And go. Are you ready? Read about trends we’re spotting.

Big Opportunities

If you have real expertise, and also a real-person approach to relationships, then there could be a fit for you at EFP Rotenberg. See what’s open.

BDO Seidman Alliance | To Your Advantage

An Independent Member of the
BDO Seidman Alliance

EFP Rotenberg is an independent member of the BDO Seidman Alliance, which connects us to the expertise and relationships of 37 BDO offices and more than 300 independent Alliance firm locations nationwide. BDO United States is a member firm of BDO International which maintains more than 1,000 offices in over 100 countries. Read more about our professional affiliations.

Primary links

Ready to get started?

Home

International Business

What to Know | What to Do

Big Opportunities

BDO Seidman Alliance | To Your Advantage