PwC Study Doesn’t Justify $1.7 Million R&D Tax Credit, US Says

Kyocera AVX Components Corp. shouldn’t get a $1.3 million tax refund for its research expenses because the multinational electronics manufacturer failed to substantiate its claim with sufficient evidence, the US government told a federal court.

IRC Section 41 offers a credit for increasing scientific investment relative to previous years, but requires the taxpayer to prove their increased expenses actually contributed to qualifying research. None of the documentation put forth by Kyocera demonstrate its credit eligibility, so the business’s refund claim can be resolved without trial, the US said in a July 19 motion for partial summary judgment.

Kyocera argues it’s ...