On December 12th, 2022, the IRS released Rev. Proc. 2023-8, providing procedural guidance for taxpayers adopting accounting methods for specified research or experimental expenditures under Code section 174 as modified by the Tax Cuts & Jobs Act.

The Research and Development (R&D) Tax Credit is a means by which the United States government incentivizes American businesses to continue innovating and expanding their abilities to research and develop better products.

If you are a taxpayer planning on claiming the Research and Development (R&D) Tax Credit, you need to decide how to calculate the credit and which method is the best for your business.