Prime Tax Group LLC

Texas has long been a leader in business and innovation, but without strong R&D tax incentives, we risk losing ground to other states. With our Prime Tax Group office located in Austin, this issue is close to home, and we recognize the importance of supporting policies that fuel innovation and economic growth. A recent study from Rice University’s Baker Institute found that extending and expanding the state's R&D tax credit could add over 113,000 jobs, generate $13.8 billion in economic growth, and ensure Texas remains a top destination for research and development. However, Texas currently ranks 33rd in R&D investment as a percentage of its economy, and with the existing tax credit set to expire in 2026, urgent action is needed. Legislators have a chance to change that with SB 2206 and HB 4393, two bills that would strengthen R&D incentives and keep Texas ahead of the curve. At Prime Tax Group, we’re advocating for policies that empower businesses, drive innovation, and solidify Texas’ role as a leader in technology and economic development. Read more in the full article: https://lnkd.in/g34Nc98i

The rise of AI-driven tax software is changing the landscape of tax preparation—but when it comes to R&D tax credits, relying on these "pop-up" AI providers could be a costly mistake. These firms claim to automate the process, but they lack the professional tax and legal expertise needed to navigate complex filings. AI alone cannot make the nuanced legal determinations required for eligibility, putting businesses and CPAs at risk of IRS audits, fines, and potential fraud investigations. At Prime Tax Group, we take no shortcuts. Our team of seasoned experts follows the full compliance process, ensuring accuracy, legitimacy, and maximum benefit for your R&D tax credits. Unlike AI-based pop-ups, we stand by our work—and our clients—long after the claim is filed. Don’t gamble with your R&D credits. Work with professionals who understand the law and protect your business. Learn more from this article: https://lnkd.in/gJvEPabd

Two recent U.S. Tax Court rulings—Smith v. Commissioner and System Technologies v. Commissioner—have set a promising precedent for businesses claiming the R&D tax credit. These decisions confirm that local laws and contract provisions play a key role in determining funding eligibility, giving businesses greater clarity and control over their R&D incentives. This is a major win for companies investing in innovation, reinforcing contractual protections and shifting funding analysis back to a business-friendly framework. At Prime Tax Group, we are committed to advocating for fair tax policies that help businesses maximize their R&D incentives and remain competitive globally. If this trend continues, it could lead to a more predictable and favorable R&D tax credit landscape, something we fully support! Learn more from this article: https://lnkd.in/g2uescHX

Lawmakers are considering a major shift in R&D tax policy—making tax credits transferable. This change would allow small businesses to sell unused credits for immediate capital, helping them reinvest in research, hire talent, and accelerate innovation. Currently, businesses must wait until they have taxable income to benefit from R&D credits, delaying their impact for years. By enabling transferability, policymakers could unlock faster access to funding, ensuring that small businesses—the true drivers of innovation—stay competitive in a global market. At Prime Tax Group, we are strong advocates for small businesses and believe they should have better opportunities to claim these credits. Making R&D credits more accessible would provide a critical boost to innovation, job creation, and economic growth. The U.S. must take bold steps to remain competitive with countries like Canada, Germany, and South Korea, which have already adopted more favorable R&D tax policies. Learn more from this article: https://lnkd.in/gvSNpYjP

A recent legislative development (HF173) could make it easier for Minnesota businesses to claim the R&D tax credit by introducing an alternative simplified credit, aligning the state's rules more closely with federal standards. This change could increase accessibility, reduce complexity, and encourage more businesses to conduct research in Minnesota rather than other states with more favorable policies. While the bill is not yet finalized, lawmakers continue to debate its potential impact. Supporters argue that simplifying the credit will make it more effective for startups and small businesses, while others raise concerns about its financial impact on the state’s budget. At Prime Tax Group, we closely follow these legislative developments to help businesses maximize their R&D tax credits while staying compliant. Check out the article here to learn more:?https://lnkd.in/gWb55XjY

Many businesses overlook valuable R&D tax credits, assuming they don’t qualify. In fact, fewer than 30% of eligible small businesses take advantage of these incentives—missing out on significant tax savings that could be reinvested into growth, innovation, and hiring. Developing new products? Improving processes or technology? Enhancing software or manufacturing methods? If so, you may qualify—even if you don’t think your work is R&D. At Prime Tax Group, we help businesses uncover these hidden savings and maximize their tax benefits. Make 2025 the year you take full advantage of the tax credits available to you. Let’s ensure you get every dollar your business deserves. Find out if your business qualifies! Contact us today to learn more.

Congress is actively debating a tax package that could reinstate 100% immediate R&D expensing, reversing the burdensome amortization requirements imposed under Section 174. For decades, full expensing fueled innovation and economic growth—its return could provide much-needed relief to businesses investing in research and development. What does this mean for you? Before 2022, companies could fully deduct R&D expenses in the same year they were incurred. Now, businesses must amortize these costs over five years (or 15 years for foreign R&D), creating cash flow challenges and financial uncertainty. Reinstating immediate expensing would allow businesses to invest more aggressively in innovation, AI, and technology advancements. At Prime Tax Group, we specialize in helping businesses navigate complex tax laws and maximize their R&D tax benefits. As negotiations continue, we are monitoring these developments closely to ensure our clients stay informed and prepared. Stay tuned for updates, and read more about the potential impact here: https://lnkd.in/g93Eu4nx

https://lnkd.in/guJWJVd2

??

Sen. Schumer moves R&D expensing to a vote THURSDAY! Call your Senators now!!! https://lnkd.in/gw87Fv_v