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Past Event
25 October 2016

United States
1:00 p.m. – 2:00 p.m. EDT
12:00 p.m. – 1:00 p.m. CDT
11:00 a.m. – 12:00 p.m. MDT
10:00 a.m. – 11:00 a.m. PDT

7:00 p.m. – 8:00 p.m. CEST
6:00 p.m. – 7:00 p.m. BST


  • William A. Schmalzl
    T +1 312 701 7225

Half Full or Half Empty? A Look at the New Research Credit Regulations for Software

In today’s economy, software development is no longer limited to companies whose business is creating software packages for sale to third parties. The need for software has become so pervasive that many, if not most, taxpayers need to develop software to manage their businesses or interact with their customers. The ability to claim a research tax credit for these activities is heavily dependent on whether this software is classified for tax purposes as internal use software.

After many years of consideration, the IRS has finalized regulations regarding the treatment of software for the research credit. How one reacts to these rules is a classic case of whether the glass is half empty or half full. The final regulations will enable many important software efforts to avoid the more burdensome tests for internal use software. At the same time, the regulations require many taxpayers to plan carefully to obtain the maximum tax benefits for their software development efforts.

This webinar will cover the new regulations’ guidance on which software development activities qualify for the research credit. Particular attention will be paid to documentation strategies and other steps that taxpayers should consider taking now to maximize the portion of their development activities that are outside the definition of internal use software and to meet the high threshold of innovation standard required to claim the research credit for internal use software.

For additional information, please contact Carly Brandess at +1 312 701 8495 or .

CLE is not available when listening to a recording of this program. In order to receive credit you must have attended the live webinar program.


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