Engineering Firm’s Bid to Revive R&D Credits Faces Wary Court

A Minnesota structural engineering firm’s bid to revive about $190,000 in tax credits for research and development was met skeptically by an Eighth Circuit judge panel during oral arguments on Wednesday.

Meyer, Borgman & Johnson Inc. sought review of a US Tax Court order they say improperly upheld an IRS determination which eliminated their claimed R&D expense credits, based on the agency’s conclusion that MBJ’s research had been funded by another person for tax purposes, and therefore didn’t qualify. A taxpayer may claim credits for up to 20% of qualified research expenses which exceed a ...