Understanding the Alternative Simplified Credit Calculation for R&D
Rachel Bishop, CPA
April 12, 2024
The Research and Development (R&D) Tax Credit is a valuable incentive offered by the US government to encourage innovation. However, calculating this credit can involve complex formulas and historical data analysis. This is where the Alternative Simplified Credit (ASC) method comes in, offering a streamlined approach for qualifying businesses. Traditional vs. Alternative Simplified Credit Calculation The Regular Historical method for calculating the R&D Tax Credit involves a complex formula that requires the calculation of a fixed base percent using information
