R&D credit expected to be extended

The Research and Development tax credit is still available for tax year 2007. However, the credit technically lapsed on December 31, 2007, as Congress recessed for the year. "We are confident the credit will once again be renewed, possibly in early 2008," said Keith Calloway, CPA, senior manager at Cotton + Allen.

Companies that perform new product development, product enhancement, process improvement or software development may be good candidates for the R&D credit, he added.

For more information on the R&D credit, please contact Calloway at 502.566.1013.