The recent pandemic has further impacted the Oil and Gas Industry on top of already struggling prices. While reading a recent article from Forbes – “The Next Relief Bill – Congress Eyes R&D Tax Credit” I was reminded of the opportunities in the industry for this credit. Congress is looking at enhancing the R&D Tax Credit as a tool to help move the economy forward. The credit is available for Upstream, Midstream, and Downstream companies and should be looked at again to see if you are involved in any activities that would qualify you for the credit. Eligible expenses for qualifying activities include wages for qualified services, costs of supplies, contract research expenses, and certain other costs.
The proposal includes:
• Doubling the credit
• Allowing the monetization of the credits immediately
• Expanding the credit for domestic manufacturing
• Increasing the refundable credit for startups
I would encourage businesses in the industry to determine if they are involved in activities that would qualify them for this credit and to watch this proposal closely as additional benefits are being considered. If you need assistance with qualifying activities as well as the impact of this proposal, please reach out to our Oil and Gas Team.
