Data Processor Seeks $32 Million in R&D Credits From California

Information technology company Electronic Data Systems Corp. & Subsidiaries sued a California tax board to claim about $32 million in research and development tax credits because that’s the amount owed under the applicable calculation method, according to its complaint.

The formula for calculating California R&D credits only considers “receipts from sales of property” that is shipped or delivered to customers in the state, the suit said. The data processing company said that it’s a service provider, so it doesn’t have enough property sales for the standard calculation, therefore “the California R&D regular credit calculation can ...