CCH Learning Center

Description:
This course discusses the state business income tax statutes that generally provide for one or more tax credits that are meant to encourage businesses to invest in facilities or equipment, to hire additional employees, or to make other qualifying expenditures that benefit the residents of the state.

If the business is a C corporation, the business should be able to use the state tax credit to reduce the corporate income tax liability that the business reports to the state.

However, if the business is an S corporation, a partnership, or a limited liability company that is treated as a passthrough entity for state income tax purposes, the business that earned the state tax credit will not have any state income tax liability at the entity level against which to apply the state tax credit.

Topics covered include:

• Preventing Double Taxation
• Case Law: Caveney v.Bower - Narrow Interpretation of R&D Tax Credit Statute
• Case Law: Bell Atlantic Nynex Mobile, Inc.Tax Credit to Partners, Not Partnership