Reducing Your PA Taxes: Buying PA R

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Reducing Your PA TaxesBuying PA RD Tax Credits

• Joel Cardis, Esquire
• Joel Cardis Consulting
• Helping Emerging Companies Emerge
• www.CardisConsulting.com
• jcardis_at_CardisConsulting.com
• 215-654-8246

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Joel Cardis, Esquire

• Lead author, Venture Capital The Definitive
  Guide for Entrepreneurs, Investors and
  Practitioners
• Advisory Board, Regional Biotechnology Council
• Member, Greater Philadelphia Venture Group
• Member, Eastern Technology Council
• Judge, Angel Venture Fair
• Former Executive in Residence, Port of Technology

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What Are Research Development Tax Credits?

• Qualified Expenses
• For Research Development
• Approved for Tax Credit Status
• Given to encourage development of technology

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Why Purchasing Credits Help Large Companies

• Buyer Purchases _at_ Discount
• Buyer Applies Credit to Taxes
• Discount Creates Tax Savings

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Who can purchase RD Tax Credits?

• Statute is Industry Neutral
• Subject to Qualified PA taxes
• Buyer Needs NO RD Expenses of its Own

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When Are Purchased Credits Used?

• Credits must be used in tax year purchased
• Cannot carry forward or back
• Cannot get tax refund
• Can not resell purchased tax credits

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Limit on Amount of Tax Offset

• Credit applicable to maximum of 75 of liability
  of any qualified Pennsylvania tax
• Qualified Taxes
• Net Corporate Income
• Capital Stock/Franchise
• Personal Income

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Thank You!

• Joel Cardis, Esquire
• [phone]
• jcardis_at_CardisConsulting.com
• www.CardisConsulting.com