President Signs Two-Year Extension of the R&D Credit

CLEVELAND (Business Wire EON) October 3, 2008 -- The Federal Research & Development Tax Credit has been extended two years through December 31, 2009. As part of the extension, the Alternative Simplified Credit was increased from 12 percent to 14 percent. Additionally, the extension terminated the Alternative Incremental Credit.

The federal R&D Credit continues to provide companies an opportunity to claim an income tax credit for activities centered on the development or improvement of products, processes, software, techniques or formulas. This credit generates significant tax savings for US companies in the manufacturing, technology, software, engineering, aerospace/defense industries and other industries.

"At a time when the economy is struggling and international competition continues to battle U.S. companies, the R&D Credit is a critical part of the solution for success. While we would like to see the R&D Credit become permanent part of the tax law, we applaud Congress and the White House for extending this important tax incentive," mentioned Michael Krajcer, TPG partner and firm's Technical Director. Michael Krajcer is an attorney, former E&Y national tax practice member, and spent 13 years with the IRS auditing large-case R&D Credit claims. Mike continued, "This extension of the R&D Credit is another strong Congressional indicator for taxpayers to continue taking advantage of this incentive."

About Tax Projects Group ("TPG")

With offices across the country, TPG consists of former "Big Four" national office tax partners, CPAs, former IRS agents, and engineers. The company teams with Fortune 5000 companies, regional CPA firms and their clients, in substantiating and defending R&D Credit claims. TPG offers a host of other tax services. Please visit our website at www.TaxProjectsGroup.com to view our service offerings. Aligned with the clients' trusted business advisors, our tax projects are imperative for maximizing and sustaining significant tax savings for past, present and future qualifying expenditures.

For more information, please contact TPG at (216) 393-2200 or visit www.TaxProjectsGroup.com.