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Reed et al. v. Swanson et al (Case Number: 5:2021cv11392)

Federal Lawsuit that has no connection to our firm Swanson Reed has been dismissed.

Case Name: Reed et al. v. Swanson et al.

Case Number: 5:2021cv11392

Court: United States District Court for the Eastern District of Michigan

Important Note:

This case has the names “Reed” and “Swanson” in the tile but has no connection to our firm, Swanson Reed and we are only reporting it here to show it has no connection to our firm. This case is concerning a complaint from a Luke Davison Reed. Luke Davison Reed has never been associated with the R&D tax credit advisory firm, Swanson Reed. Please note that Pinnacle Properties, LLC or any other persons or entities in this case have no connection to Swanson Reed either.

Case Summary

This case has no connection to our firm, Swanson Reed and we are only reporting it here to show it has no connection to our firm. This case is concerning a complaint from a Luke Davison Reed. Luke Davison Reed has never been associated with the R&D tax credit advisory firm, Swanson Reed. Please note that Pinnacle Properties, LLC or any other persons or entities in this case have no connection to Swanson Reed either.

A federal lawsuit filed by plaintiff Luke Davison Reed was dismissed after the court determined it lacked the proper authority, or subject matter jurisdiction, to hear the case. Reed’s complaint alleged a significant loss of personal property valued at over $1 million but ultimately failed to establish a valid legal basis for a federal court to preside over the dispute.

Key Parties

Plaintiff: Luke Davison Reed
Defendants: Pinnacle Properties, LLC; a property manager identified as “Smith”; and a bookkeeper identified as “Diane”.

Core Legal Issues and Court’s Reasoning

The central issue leading to the case’s dismissal was the lack of subject matter jurisdiction. Federal courts can typically only hear cases under two main conditions:

Diversity Jurisdiction: The case involves a dispute between citizens of different states. In this lawsuit, the court found that all parties, including the plaintiff and all defendants, were residents of the state of Kentucky. This completely eliminated the possibility of diversity jurisdiction.
Federal Question Jurisdiction: The lawsuit involves a claim arising under the U.S. Constitution or federal laws. While Reed’s complaint made a vague reference to the Sixth Amendment, the court found it irrelevant to the civil claims and concluded that the complaint did not present a valid legal claim under federal law.

The court also noted that the complaint itself was deficient, as it lacked specific factual allegations against the defendants. It only made a general claim that over $1 million in property had been “lost,” which did not meet the necessary legal standards for a formal complaint.

Outcome

Please not that this case has no connection to our firm, Swanson Reed and we are only reporting it here to demonstrate that it has no connection to our firm.

The defendants filed motions for summary judgment. After a review, a magistrate judge issued a Report and Recommendation, which the district judge adopted. Consequently, the case was dismissed.

The dismissal was based on procedural grounds (lack of jurisdiction) and was not a judgment on the actual merits of the property loss claim. The court indicated that the appropriate venue for such a dispute would be a state court in Kentucky, where all parties reside.

This case has no connection to our firm, Swanson Reed and we are only reporting it here to show it has no connection to our firm. This case is concerning a complaint from a Luke Davison Reed. Luke Davison Reed has never been associated with the R&D tax credit advisory firm, Swanson Reed. Please note that Pinnacle Properties, LLC or any other persons or entities in this case have no connection to Swanson Reed either.

IRS allows immediate expensing for all SMB R&D claims

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For taxpayers, with a taxable year beginning in 2024 and ending before September 15, 2025, the IRS is granting an automatic extension of time to file superseding tax returns.

Introduction

On July 4, 2025, the One, Big, Beautiful Bill Act (OBBBA) was enacted, bringing significant changes to the treatment of research and experimental (R&E) expenditures under the U.S. Internal Revenue Code. Revenue Procedure 2025-28, released by the IRS, outlines the procedures for taxpayers to adapt to these changes, including new elections and methods of accounting for domestic and foreign R&E expenditures. A key highlight of this revenue procedure is the introduction of superseded return rules, which provide taxpayers with an automatic extension to file updated tax returns. Let’s dive into what this means and how it impacts businesses.

Superseded Return Rules: A Lifeline for 2024 Taxpayers

Section 8 of Rev. Proc. 2025-28 offers a critical relief provision for taxpayers with a taxable year beginning in 2024 and ending before September 15, 2025, where the original due date for their tax return (excluding extensions) was prior to September 15, 2025. This period covers what we’ll call the “2024 taxable year.” For these taxpayers, the IRS grants an automatic extension of time to file superseding tax and information returns that apply the provisions of this revenue procedure.

This extension is a game-changer for businesses that may have already filed their 2024 returns without accounting for the OBBBA’s new rules, which took effect for expenditures paid or incurred in taxable years beginning after December 31, 2024. The ability to file a superseded return allows taxpayers to correct their accounting methods and elections retroactively, ensuring compliance with the updated regulations without facing penalties for late filing – provided the new return is submitted within the extended timeframe.

Why This Matters

The OBBBA revamps the treatment of R&E expenditures, splitting them into domestic and foreign categories with distinct rules (click here for more details):

Domestic R&E Expenditures (Section 174A): Starting in 2025, these are immediately deductible, with an optional election to amortize over at least 60 months if capitalized. This contrasts with the previous Tax Cuts and Jobs Act (TCJA) rules, which required capitalization and amortization over 5 years.
Foreign R&E Expenditures (Section 174): These remain capitalized and amortized over 15 years, with new rules for handling disposed or abandoned property.

For the 2024 taxable year, businesses may have capitalized domestic R&E expenditures under the old TCJA Section 174 rules. The superseded return option allows them to adjust these treatments, potentially claiming immediate deductions or electing new amortization periods under Section 174A, depending on their circumstances.

How to Take Advantage

Taxpayers should review their 2024 R&E expenditures to determine if adjustments are necessary. The automatic extension means no formal request is needed to file a superseded return – just ensure it’s submitted by the extended deadline (likely tied to the September 15, 2025, cutoff, though exact dates should be confirmed with IRS guidance). This is particularly beneficial for small businesses and those with short 2025 taxable years, who also receive transition rules under Section 7.02 of the procedure.

Broader Context

The superseded return rules align with the OBBBA’s transition framework, which includes automatic changes in accounting methods and elections to handle unamortized amounts from prior years. For instance, taxpayers can elect to amortize remaining TCJA Section 174 amounts in full in 2025 or over two years, with no Section 481 adjustments required. This flexibility ensures a smooth shift to the new regime, minimizing tax disruptions.

Conclusion

The superseded return rules in Rev. Proc. 2025-28 are a thoughtful provision, giving taxpayers breathing room to align their 2024 filings with the OBBBA’s changes. For businesses with significant R&E spending, this could mean substantial tax savings or corrected compliance.

If you’ve filed your 2024 return and suspect it doesn’t reflect these new rules, now is the time to act. Consult with a tax professional to assess your eligibility and ensure your superseded return is filed correctly before the deadline.

Stay informed as more IRS guidance may follow, and consider leveraging this opportunity to optimize your R&E tax strategy moving forward!

What is the R&D Tax Credit?

The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.

R&D Tax Credit Preparation Services

Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.

If you have any questions or need further assistance, please call or email our CEO, Damian Smyth on (800) 986-4725.
Feel free to book a quick teleconference with one of our national R&D tax credit specialists at a time that is convenient for you.

R&D Tax Credit Audit Advisory Services

creditARMOR is a sophisticated R&D tax credit insurance and AI-driven risk management platform. It mitigates audit exposure by covering defense expenses, including CPA, tax attorney, and specialist consultant fees – delivering robust, compliant support for R&D credit claims. Click here for more information about R&D tax credit management and implementation.

Our Fees

Swanson Reed offers R&D tax credit preparation and audit services at our hourly rates of between $195 – $395 per hour. We are also able offer fixed fees and success fees in special circumstances. Learn more at https://www.swansonreed.com/about-us/research-tax-credit-consulting/our-fees/

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To amend or not to amend? That is the question

OBBBA and R&D Deductions: Should You Amend or Hold Off for 2024?

The One Big Beautiful Bill Act (OBBBA) gives small businesses a valuable opportunity: the ability to immediately deduct research and development (R&D) expenses incurred in 2022, 2023, and 2024. Yet, a gap in the law’s wording has left business owners uncertain about how to properly handle their 2024 tax returns.

Where the Uncertainty Lies
The statute says amended returns are required for any year “affected by the election.” This phrase has led to two competing approaches:

Play It Safe: File the original 2024 return under the old capitalization rules, then amend once the IRS clarifies the election process. Lower risk, but delayed benefit.

Take a Bold Stance: File the 2024 return claiming the full deduction up front, arguing this reflects Congress’s intent to provide immediate relief. Faster benefit, but more exposure if challenged.

Why Prior Years Matter
A common oversight is assuming you can just deduct 2024 costs on the original return. If 2022 and 2023 remain on the books with capitalized expenses, the IRS may see that as an impermissible accounting method change.

Practical Approach for Now
Until the IRS issues official instructions, the cautious move is to:

File 2024 following capitalization rules.

Watch for IRS guidance on Section 174A.

Be ready to amend 2022–2024 to claim deductions once procedures are announced.

Looking to 2025
From 2025 onward, businesses can freely deduct R&D costs again and may also “catch up” deductions from 2022–2024. For some taxpayers, waiting until then could be the simplest and least risky way forward.

Do you want me to suggest a few other replacement options for “confusion” (like ambiguity, lack of clarity, or gray area) so you can pick the one that fits best with your style?

What is the R&D Tax Credit?

The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.

R&D Tax Credit Preparation Services

Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.

If you have any questions or need further assistance, please call or email our CEO, Damian Smyth on (800) 986-4725.
Feel free to book a quick teleconference with one of our national R&D tax credit specialists at a time that is convenient for you.

R&D Tax Credit Audit Advisory Services

creditARMOR is a sophisticated R&D tax credit insurance and AI-driven risk management platform. It mitigates audit exposure by covering defense expenses, including CPA, tax attorney, and specialist consultant fees—delivering robust, compliant support for R&D credit claims. Click here for more information about R&D tax credit management and implementation.

Our Fees

Swanson Reed offers R&D tax credit preparation and audit services at our hourly rates of between $195 – $395 per hour. We are also able offer fixed fees and success fees in special circumstances. Learn more at https://www.swansonreed.com/about-us/research-tax-credit-consulting/our-fees/

Schedule a Teleconference

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Upcoming Webinars

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R&D Tax Credits and Alternative Minimum Tax (AMT)

Businesses with average annual gross receipts under $50 million can now use R&D tax credits to offset both regular tax and AMT. Previously, companies subject to AMT couldn’t use R&D credits to lower their tax liability.

Eligible Small Business Definition

Under Section 38(c)(5)(C), an “eligible small business” is defined as:

A non-publicly traded corporation, partnership, or sole proprietorship.
It must have average annual gross receipts of $50 million or less for the three-taxable-year period before the current tax year.

Special Rules (Section 448(c)(3)):

If the business or its predecessor was not in existence for the full three years, the gross receipts test applies to the period it was in existence.
For short tax years, gross receipts must be annualized.

Additional Details

Gross Receipts Adjustment: Gross receipts must be reduced by returns and allowances.
Controlled and Affiliated Groups: All members of controlled groups or businesses under common control are treated as a single entity.
Partners and S Corporation Shareholders: Both the partnership/S corporation and the individual partner or shareholder must meet the gross receipts test to qualify.

This change provides greater tax planning flexibility for small businesses engaged in R&D, potentially lowering their overall tax burden.

For more information, contact our team or consult with your Swanson Reed tax advisor to understand how you can benefit from the R&D tax credit.

Navigating the New Form 6765: Claiming the R&D Tax Credit in 2025

Mississippi Patent of the Month - August 2021

Businesses involved in research and development activities have long benefited from the R&D tax credit, helping to offset costs associated with innovation. However, the landscape for claiming this credit is changing with the introduction of the revised Form 6765, Credit for Increasing Research Activities. Starting with the 2024 tax return, this new version demands significantly more detailed information, impacting how businesses prepare and file for this valuable tax benefit.

Key Changes to Form 6765

The IRS first introduced revisions to Form 6765 during a preview period in September 2023, seeking feedback on proposed changes. After reviewing input, the IRS released a draft version in June 2024, followed by updated drafts and instructions in December 2024. The finalized Form and Instructions have just been released by the IRS (February 2025). These revisions bring about several critical changes:

1. New Items A and B

These are two yes-no questions that appear before the calculation sections:

Item A asks if the company intends to elect the reduced credit under section 280C.
Item B asks if the company is part of a controlled group or under common control.

2. Revisions to Sections A and B

Sections A and B, which cover the Regular Credit and Alternative Simplified Credit methods, have been simplified. The detailed breakdown of qualified research expenses (QREs) has been moved to the new Section F, with only the total QREs displayed in Sections A and B.

3. Introduction of New Sections

Section E: Captures information about the number of business components, officer’s wages, acquisitions, new expense categories, and ASC 730 compliance.
Section F: Summarizes qualified research expenses by category, including wages, supplies, contract research, computer rental/lease costs, and basic research costs.
Section G: Requests detailed information for each business component, including names, descriptions of research objectives, and expenses.

4. New Section G’s Detailed Reporting Requirements

Section G demands a breakdown of the 80%/Top 50 business components by expense type and requires the following details:

Entity and company code
Type of business component (e.g., product, process, or software)
Information sought through research
Detailed wage expense categories (e.g., direct engagement, supervision, support)

Impact on the 2024 Tax Return (Processing Year 2025)

For the 2024 tax return, new Section G is optional, providing temporary relief from detailed reporting requirements. However, businesses must still complete Items A and B, as well as Sections E and F. This allows companies to adjust to the new requirements while preparing for mandatory compliance in the following years.

Looking Ahead: 2025 and Beyond

For the 2025 tax return and beyond, new Section G becomes mandatory for all businesses filing a research credit claim, except for:

Qualified Small Businesses claiming the credit against payroll tax
Businesses with $1,500,000 or less in total QREs and $50,000,000 or less in gross receipts

Businesses required to complete Section G must provide detailed information on each business component at the time of filing. Early preparation, understanding the draft requirements, and strategic planning are essential for a smooth transition.

Preparing for the Transition

The changes to Form 6765 introduce more complexity but also offer opportunities to optimize R&D tax credit claims through meticulous reporting. Here’s how businesses can prepare:

Review the Draft Requirements: Familiarize your team with the new sections and reporting requirements.
Organize Detailed Documentation: Ensure that all business components and research expenses are meticulously documented.
Evaluate Exemptions: Determine if your business qualifies for any exemptions, such as the payroll tax credit option or revenue thresholds.
Consult with Tax Specialists: Engage with tax professionals experienced in R&D credits to navigate the new requirements effectively.

Need Help Navigating the New Form 6765?

The transition to the new Form 6765 will require strategic planning and detailed documentation. If your business needs assistance, Swanson Reed’s R&D tax specialists are ready to guide you through the changes. Reach out today to ensure a smooth and compliant filing process for the 2024 tax return and beyond.

For more information, contact our team or consult with your Swanson Reed tax advisor to understand how these changes impact your business.

Michigan’s New R&D Tax Credit: A Catalyst for Innovation and Economic Growth

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In a strategic move to bolster innovation and stimulate economic growth, Michigan has introduced a Research and Development (R&D) Tax Credit, effective from January 1, 2025. This initiative is designed to incentivize businesses to invest in research and development within the state, offering substantial financial benefits to both small and large enterprises.

Key Features of the R&D Tax Credit:

Refundable Credit: One of the most significant advantages of this tax credit is its refundable nature. This means that even if a company has no tax liability, it can still receive a cash refund for qualified research expenses incurred in Michigan. This feature is particularly beneficial for startups and small businesses that may not yet be profitable but are investing heavily in R&D.
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Tiered Benefits Based on Company Size: The tax credit is structured to provide varying benefits based on the size of the business:
- For businesses with fewer than 250 employees: Eligible for a 15% credit on qualified research expenses, capped annually at $250,000.
- For businesses with 250 or more employees: Eligible for a 10% credit, with an annual cap of $2 million.
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Incentives for Collaboration with Research Universities: To foster partnerships between industry and academia, the tax credit offers an additional 5% credit, capped at $200,000 annually, for businesses that collaborate with Michigan’s research universities. This encourages companies to leverage academic expertise and resources, potentially leading to groundbreaking innovations.
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Establishment of the Michigan Innovation Fund:

Complementing the R&D Tax Credit, Michigan has also launched the Michigan Innovation Fund, a $60 million program aimed at supporting startups and early-stage businesses. The fund provides grants to empower new businesses in their formative stages, with a particular focus on communities that have been historically underserved. This initiative is expected to lead to long-term growth in areas that have previously lacked access to early-stage capital.

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Implications for Michigan’s Economic Future:

These initiatives signal Michigan’s commitment to fostering a robust innovation ecosystem. By reducing the financial burden of R&D and providing early-stage capital, the state is creating an environment where businesses can thrive. This approach is anticipated to attract new companies, retain existing ones, and ultimately drive economic growth, solidifying Michigan’s position as a hub for innovation.

In conclusion, Michigan’s new R&D Tax Credit and the Michigan Innovation Fund represent significant steps toward enhancing the state’s economic landscape. Businesses operating in Michigan should explore these opportunities to maximize their potential for growth and innovation.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Astra Secures Contract with Defense Innovation Unit

California launch company Astra has secured a significant boost for its upcoming Rocket 4 with a new contract from the Defense Innovation Unit (DIU). Announced on October 23rd, the deal underscores the potential of Astra’s “tactically responsive launch system” and could propel the company back into the spotlight.

The DIU, a U.S. military organization focused on utilizing commercial technologies, has pledged up to $44 million to support Astra. This funding will be directed towards “advancing and scaling the production capabilities” of Astra’s launch system, ultimately aiming for a successful launch of Rocket 4. The contract allows for launches from various locations, including the United States and Australia.

This news comes after a challenging period for Astra. Their previous Rocket 3 program experienced several setbacks, culminating in a failed June 2022 launch that left two NASA hurricane-tracking satellites stranded in the wrong orbit. These difficulties led to internal restructuring, including the company going private earlier this year.

The DIU contract signifies a renewed confidence in Astra’s capabilities. With this crucial financial backing, Astra is poised to make a comeback with the more powerful and versatile Rocket 4.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Wyoming and Colorado Team Up to Support Climate Resilience R&S

The Colorado-Wyoming Climate Resilience Engine has launched the first round of investments in their Research and Development and Translation/Startup projects. This included funding from the U.S. National Science Foundation (NSF) Regional Innovation Engines program.

Governors Jared Polis of Colorado and Mark Gordon of Wyoming collaborated to announce the recipients of the inaugural grant program by the CO-WY Climate Resilience Engine. This partnership signifies a new phase in the joint efforts of the two states to create climate resilience solutions that safeguard communities, encourage innovation, and stimulate economic development.

The Winners of the Climate Resilience Engine include:

University of Wyoming
- Project Title: Weather extremes and water resource climate transitions in Colorado and Wyoming
Colorado State University
- Project Title: Developing soil pyrogenic carbon monitoring and modeling capabilities to improve prediction of wildfire impacts and biochar management on ecosystem resilience and C sequestration.
- Project Title: Evaluation of monitoring, reporting, and verification (MRV) technology for cattle feedlots.
University of Colorado Boulder
- Project Title: Mapping Vulnerability: Assessing the Built Environment’s Susceptibility to Wildfires through AI and Big Data.
Colorado School of Mines
- Project Title: Predicting Regional Wildfire Risk through Climate-Wildfire-Power-System Interactions.
High Plains Biochar
- Project Title: CO-WY Biochar
Page Technologies
- Project Title: Next-Gen Soil Monitoring: Wireless Printed Sensors for Agriculture
Aquanta Vision Technologies Inc
- Project Title: Commercialization of an enhanced methane leak detection platform

“When Wyoming joined the engine, we were focused on identifying and addressing specific Wyoming issues, including the impacts of droughts and wildfires,” Governor Gordon said. “Wyoming and Colorado may not be in alignment on many issues, but I will always support efforts within each of our states to benefit our citizens.”

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

iSciences Secures Funding Award from NASA

iSciences LLC has secured funding from NASA for a 3-year project: Sustaining the Geospatial Data Abstraction Library.

NASA recently awarded $15.6 million in grant funding to 15 different projects in an effort to support the maintenance of open-source tools, frameworks, and libraries used by the NASA science community, for the benefit of all.

The grants are funded by NASA’s Office of the Chief Science Data Officer through the agency’s Research Opportunities for Space and Earth Science.

iSciences has made a name for itself, monitoring freshwater resources and forecasts with a proprietary Water Security Indicator Model. The company secured funding from NASA’s Sustainment Awards category. The funding will support the company as they strive to support and sustain a geospatial data abstraction library – a tool essential to evidence0based analysis.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Sustainea Announces Renewable Chemical Plant in Lafayette

Sustainea, a Brazilian renewable chemical company, has announced plans to locate its first U.S. operations in Indiana. This expansion will come with a $400 million investment to establish its first Bio-MEG (monoethylene glycol) industrial plant in Lafayette.

The facility will be co-located with Primient, leveraging the company’s local supply of corn dextrose to produce a renewable, plant-based alternative to petroleum-based MEG. The company plans to break ground on its new Indiana operation following the finalization of engineering and final investment decision and expects to begin production in 2028. Sustainea plans to create up to 191 new, high-wage jobs in the coming years to support its growth.

Sustainea was founded as a joint venture between Brazil-based Braskem and Japan-based Sojitz. The company develops technologies to bring sustainability to the bottles and textiles market. While rethinking the raw materials, the company has developed their proprietary BioMPG and BioMEG.

The new facility will produce BioMEG from Primient’s Dextrose – a carbohydrate derived from con. This will provide a renewable chemical that is a key component in the manufacturing of polyethylene terephthalate (PET). PET has numerous applications across various sectors, including textiles (apparel, footwear) and packaging (beverage bottles, food packaging).

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.