admin – Swanson Reed | Specialist R&D Tax Advisors

Amortization R&D Tax Changes Postponed by House Budget Bill

Alaska Patent of the Month - September 2021

A reconciliation bill passed the House Budget Committee on September 25 with amendments regarding the R&D tax credit requirements. The amendment would delay the requirement for companies to amortize research and development expenditures for four years. The delay would begin in 2022.

This amortization requirement came into play in the Tax Cuts and Jobs Act in 2017 with an initial delayed start date. This meant the new rules would apply only to those amounts paid or incurred in tax years beginning after December 31, 2021. Amortization of these expenditures would typically be spread over five years. This is a big change from the traditional route, where companies expense these investments in the same year the costs were incurred.

With the delay, this amortization factor will not apply to expenditures incurred in tax years of 2026 or later. Since the change was announced back in 2017, lawmakers on both sides have fully criticized the change to the expensing rules. By forcing companies to amortize their expenditures, it creates a scenario where companies will face increased upfront costs during their R&D activities. In fact, research into this change has predicted that the competitive nature in US R&D would be significantly hurt as a result.

You might wonder why this change was enacted, if it’s so broadly criticized. The change came along with a slew of other changes in the 2017 TCJA, all of which were meant to make the US economy more globally competitive. Unfortunately, by requiring companies to amortize their R&D expenditures, the time value of the costs are negatively afflicted, reducing the tax benefits for the companies. This could lead to less domestic R&D, as it will be more beneficial to conduct these activities elsewhere. As R&D activities move elsewhere, so do the jobs. It’s predicted that this change to the TCJA will have greatly negative downstream impacts for the economy.

Luckily, with the delay of enactment, this problem can be put off for the next four years. The delay was suggested by a lawmaker as a way to buy time to find a more permanent resolution while still controlling the revenue cost for purposes of the Democrat’s reconciliation bill. All in all, companies are likely happy to hear about this delay and the chance for it to be changed before it has a chance to impact them.

Are you conducting research and development activities? 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.

Axis Research & Technologies Opens New Research and Training Facility

Axis Research & Technologies has announced the opening of their newest 10,000 sqft. facility in Nashville, Tennessee. Axis is a premiere bioskills training facility and cadaver lab space. They provide space, skill, and tools needed to support both medical research and training.

This new location will provide an expansive and fully functional operating lab for multi-skill training, private operating suites for smaller labs, large conference rooms, and configurable multi-purpose spaces. As with all Axis locations, the Nashville facility features Axis’ unique advanced HIPAA-Compliant Global Training Platform allowing surgeons, educators, and researchers to broadcast, record and tele-train anywhere around the globe.

Beyond this, the lab will be available for medical device research and development for companies and hospital groups.Axis is working on their own IP that will change the game for these companies and developers. Their goal is to create a technology that allows for more effective learning, less liability, and a more intelligent, integrative experience. Axis’s IP will change future behavior and lead to more intelligent programming in addition to collecting important data and analytics. In the near future, Axis’s new technology will include mixed medical reality and AI-powered networks to assist in live surgeries, staff training, research, and education.

Are you developing new software 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.

URI’s Graduate School of Oceanography Receives $1.5M Grant

Researchers at the University of Rhode Island and Penn State University have been awarded a full four-year, $1.5 million grant through the National Oceanic and Atmospheric Administration.

This research is meant to protect New England coastal communities, national parks, and wildlife refuges from the impact of sea-level rise and extreme weather. The key players in this research include those in the URI’s Graduate School of Oceanography, it’s College of the Environment and Life Sciences, the Department of Ocean Engineering, and the URI Coastal Resources Center. In addition to these groups, URI can expect collaboration from the Schoodic Institute and the National Park Service.

The ultimate goal of the project is to help communities, the National Park Service, and the U.S. Fish and Wildlife Service adapt and improve their resilience as climate change marches on. This change has led to extreme weather such as hurricanes and nor’easters continuing to increase in terms of frequency and severity.

The project intends to expand the body of research related to the effects of extreme weather and sea level rise which currently lacks a clear understanding of the combined impacts of phenomena. As such, URI intends to focus specifically on the combined impacts of sea level rise and extreme weather events.

“This federal research funding will help URI faculty and students gather valuable information to answer questions about changing sea levels and in turn protect coastal communities from the effects of climate change,” said U.S. Senator Jack Reed.

Are you developing new software 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.

Avanti Energy Finds 17 Drilling Targets for Helium Exploration

Microbeam Technologies Awarded $250K in Funding

Avanti Energy, Inc., a Vancouver-based company, has outlined 17 initial drill targets in Montana. They have recently finished their evaluation of recently acquired 3D seismic data and the results support their helium exploration models.

The drill targets reside over closed structural highs that exhibit ~80m to >200m of relief and are highly prospective for helium. The comprehensive evaluation of the area, core, and log analysis indicate excellent reservoir quality rock. The next phase of Avanti’s plan is to spud their initial wells in late 2021 with the purpose of targeting and testing the potential of all three pay zones. They will also proceed with surface surveys and evaluations to prepare for this upcoming drilling.

Helium has been in short supply as of late, with markets experiencing massive shortages. There are still pockets of helium stored within the earth, and Avanti is determined to develop large-scale projects to extract hese, as efficiently as possible.

Between Avanti’s proprietary models and the interpretation of this 3D data set, the company has been able to select attractive drilling targets, a move which significantly de-risks their exploration programs. In addition to this update, Avanti has retained Crescendo Communications, LLC to work on investor relations, broadening the awareness of Avanti within the North American financial markets.

With this great progress in Montana, Avanti continues to evaluate multiple opportunities across Western Canada and the United States to build an industry-leading helium company with a premier portfolio of prospective lands.

Are you developing new software 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.

REGENXBIO to Announce Interim Clinical Trial Results

Maryland-based REGENXBIO is a leading clinical-stage biotechnology company seeking to improve lives through the curative potential of gene therapy. Biotech, as an industry, is expensive and requires lots of capital to support any development and innovation. Earlier this month, REGENXBIO announced a partnership with AbbVie. Now, we can expect a presentation of some of their data from their RGX-314 clinical trials. The partnership with AbbVie allowed REGENXBIO to unlock the full value of its organic pipeline.

They will present their data at the Retina Society 54th Annual Scientific Meeting in Illinois. Their product, RGX-314, is a potential best-in-class, one-time gene therapy for the treatment of wet AMD. The presentation will show interim results at six months of follow up for patients in Cohort 1 (dose level: 2.5×1011 genome copies per eye)

RGX-314 is being investigated as a potential one-time treatment for wet AMD, diabetic retinopathy, and other chronic retinal conditions. RGX-314 consists of the NAV AAV8 vector, which encodes an antibody fragment designed to inhibit vascular endothelial growth factor (VEGF). RGX-314 is believed to inhibit the VEGF pathway by which new, leaky blood vessels grow and contribute to the accumulation of fluid in the retina.

REGENXBIO is advancing research in two separate routes of administration of RGX-314 to the eye, through a standardized subretinal delivery procedure as well as delivery to the suprachoroidal space. REGENXBIO has licensed certain exclusive rights to the SCS Microinjector® from Clearside Biomedical, Inc. to deliver gene therapy treatments to the suprachoroidal space of the eye.

Are you developing new software 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.

Greenfield Nitrogen Partners Up to Build Green Hydrogen and Ammonia Facility

Hawaii Patent of the Month - August 2021

NextChem, a subsidiary of Maire Tecnimont, is focused on the field of green chemistry and technologies for the Energy Transition. Recently, NextChem, along with Maire Tecnimont’s other subsidiaries MET Development and Stamicarbon, have reached an agreement with Greenfield Nitrogen, LLC to develop the first dedicated green ammonia plant in the US Midwest, specifically in Iowa.

Greenfield Nitrogen is working on developing a crucial network of green hydrogen and ammonia facilities along the Midwest to serve the emerging renewable energy markets. With the new advancements in electrolysis technology, their plant design is a completely green, carbon free hydrogen and ammonia facility which will use 100% renewable energy as well as significantly less water than conventional hydrogen and ammonia production.

To kickstart this agreement, NextChem will start a feasibility study for the 240 tpd green ammonia project, using renewable energy as feedstock through the intermediate production of green hydrogen. MET Development will assist Greenfield Nitrogen in the development throughout the project. Stamicarbon will provide the ammonia technology used in the plant.

This green ammonia plant will strengthen the development of the low carbon industry in the region. The companies estimate it will save over 166,000 tpy of CO2 emissions. Since it will also produce approximately 83,000 tpy of ammonia, it will reduce the dependency on importing ammonia from abroad and further reduce the carbon footprint for the industry.

Linda Thrasher, President, Greenfield Nitrogen, LLC commented: “This partnership represents a collaboration of strengths. As a development partner, Maire Tecnimont and its subsidiaries bring decades of expertise in successfully designing and executing nitrogen projects as well as creating new technology, including state-of-the-art zero-carbon facilities. Greenfield’s development expertise, operational experience, and market knowledge align well and position both companies to play a critical role in meeting the world’s decarbonization goals.”

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.

UVM to Research Seaweed for Organic Dairy Cows

The University of Vermont’s (UVM) Sabrina Greenwood will head a multi-institutional research team. Her team at the Greenwood Lab have been awarded $2.9 million to explore the potential animal health, environmental and economic benefits of seaweed as a feed alternative for organic dairy cows. The grant comes from the USDA’s newly funded Organic Agriculture Research and Extension Initiative projects to help improve yields, milk quality and profitability for organic farmers and producers.

We’ve seen a rise in demand for organic milk recently and along with this rise in demand, instability in pricing. This has put a heavy strain on the organic dairy community. In addition, farmers have voiced concerns and struggles with climate change and a rise in demand to reduce the industry’s environmental footprint. Greenwood and her team think seaweed could be a key solution to some of these problems.

Seaweed is a nutritious alternative to traditional feed supplements which are made with corn and soybean. Seaweed also has the ability to reduce cow’s methane emissions. It can also be sustainable grown and offer benefits to soil health through altered manure profiles as the cows eat the seaweed.

“Teaming up with the aquaculture industry may be a perfect pairing to address organic farm sustainability and production efficiency in organic dairy,” said Greenwood, associate professor in the Department of Animal and Veterinary Sciences and the project director. “We are looking to holistically characterize the opportunities for organic seaweed to provide not only a more sustainable feed option, but one that could boost milk productivity and animal health without compromising natural resources.”

There are many different seaweed species, each with unique nutritional profiles and most which have not been studied. While kelp meal – a common brown seaweed – has become popular among organic farmers, other species may offer better benefits for cow health and milk productivity.

The team at UVM will spend the next four years working with Bigelow Laboratory for Ocean Sciences, the University of New Hampshire, and Syracuse University to explore the nutrient profile of various seaweed species, processing methods, and their impact on animal health, milk quality, and environmental impact.

Are you developing new software 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.

Generac to Further their Expansion with $53M Investment

California Patent of the Month - August 2021

Generac Holdings Inc. is an American manufacturer of backup power generation products for residential, light commercial, and industrial markets. Based in Waukesha, Generac has plans to expand their presence in Wisconsin by adding 700 new jobs and investing $53 million in its operations as the company seeks to meet the ever rising demand for their power products.

Generac also has operations in South Carolina, Vermont, and Maine. The planned expansion will rely on $19 million in state tax credits obtained by meeting certain hiring and capital investment goals. As long as these goals are met by 2024, Wisconsin Economic Development Corp. will supply the $19 million in enterprise zone tax credits.

“Generac is experiencing phenomenal demand and growth as the combination of an aging (electricity) grid and extreme weather are resulting in more frequent and longer-lasting power outages,” said Aaron Jagdfeld, president and CEO of Generac. “We are proud to continue to expand our presence in Wisconsin as we work to meet the incredible market demand.

Tom Pettit, COO of Generac, said of the 700 new jobs, 300 will be in sales, marketing and customer service at their new facility in Pewaukee.

“That is going to free up space in our corporate headquarters to move some people here and to add more in research and development and corporate staff,” Pettit said. “That research and development will continue to ideate and develop more new products to continue that amazing growth and investment in our community.”

This move comes shortly after Generac announced the opening of a large manufacturing and distribution facility in South Carolina. This 421,000 sqft. Facility was needed to support increased demand for standby generators and associated energy technologies while serving as a distribution center to consumers.

Aside from the energy infrastructure and extreme weather events, Pettit mentioned the trend of more people working from home as another factor behind the increased demand for energy.

“If you can’t charge your phone, you don’t have the ability to have contact,” Pettit said. “This is an essential appliance, not just a suggested appliance.”

As work from home continues to expand, we may see even more expansions from Generac in the future.

Are you developing new software 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.

Tigeraire Receives Funding from General Catalyst

Tigeraire, Inc. is the first company in Louisiana to attract seed funding from a global top 50 venture capital firm – ever. This tech startup at the LSU Innovation Park has announced they have signed General Catalyst as their lead investor. General Catalyst is a Silicon Valley venture capital firm known for their investments in popular businesses including Venmo, Stripe, Airbnb, and TikTok.

Tigeraire got their start when Jack Karavich moved to Louisiana and began helping the LSU football team. He discovered the limitations of a football helmet in the blistering heat of summer – overheating and breathing difficulties. So he developed a prototype that enhanced airflow in the helmet. The design for this first model – the Cyclone – used dual blowers designed to fit between the padding inside a football helmet, providing cooler air and more comfort to the player. Their portfolio of products is set to grow over the next year into other sports as well as industrial hard hats and ballistic helmets.

One of the main goals of Tigeraire’s helmet technologies is to help battle extreme heat and humidity—a hallmark of south Louisiana. By improving airflow, “cooler heads can prevail,” the company argues, including through increased sweat evaporation and decreased visor fog.

Are you developing new products 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.

Inotiv, Inc. to Evaluate BioVaxys’ CoviDTH

BioVaxys Technology Corp. has announced their plans to work with Inotiv, Inc. This comes with BioVaxys Technologies plans to start their in vivo animal toxicology study of CoviDTH in parallel with the preparation of an IND submission. This plan came with a contract announced back in march to have Inotiv, a global contract research organization, evaluate the safety, tolerability, and toxicity of the purified recombinant SARS-CoV-2 s-protein. This protein is a principal constituent of BioVaxys’ CoviDTH- an experimental diagnostic for COVID-19.

The Inotiv study will utilize a purified recombinant s-protein produced by WuXi Biologics, who is BioVaxys’ bioproduction partner. Indiana-based Inotive provides contract research services to start up and emerging pharmaceutical companies, drug development companies, and medical research organizations.

CoviDTH is a low cost, disposable, diagnostic approach to identify a T-cell immune response to the presence of SARS-CoV-2. They had recently published clinical studies which validated the use of the delayed type hypersensitivity (DTH) cutaneous test behind CoviDTH as a feasible and safe in vivo method to assess cellular immune responses in both natural and vaccinated SARS-CoV-2 exposed individuals. They also validated that the DTH response is highly durable, persisting for at least one year after either COVID-19 exposure or vaccine administration.

BioVaxys President and Chief Operating Officer Ken Kovan stated, “Based on the millions of people who have received COVID-19 vaccines that are based on in vivo cellular expression of SARS-CoV-2 s-spike protein, as well as the human DTH studies, we are confident that the toxicology study with Inotiv of the s-protein will likewise confirm the safety profile of CoviDTH.”

Are you developing new software 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.