R&D Credit

[Nashville]

How many years can R&D Credits be carried before they expire?

Situation: Associates' client has loss or break-even profits for about 4-5 years. However, during these years, corporation has been stockpiling R&D credits even though not usable because of no tax liability.

The oldest of these unused R&D credits is from fiscal 2003. How long before these expire?

[erchess]

See the Instructions to Form 3800

The way I read what I see there if the client is an eligible small business he must carry the credits first back one or five years - and which is not a matter of election - and then forward twenty years.

I had no idea about this but I was glad to look it up in the web library. Now I at least know where to go if I ever have this come up in my practice.