WHAT COMPANIES ARE ELIGIBLE SMALL BUSINESSES?
An Eligible Small Business must meet the following requirements:
1. Reported Gross Receipts for five years or less. Beginning with taxable years beginning after January 1 2016, an eligible business cannot must not have reported Gross Receipts prior to the 2012 tax year.
2. Recognize less than $5 million in Gross Receipts in the current year, and for each subsequent year the credit is elected.
3. Qualifying research activities and expenditures.
Taxpayers are allowed to elect up to $250,000 of the R&D credit against their payroll tax liability.