Dow loses R&D tax credit case
WASHINGTON — A U.S. appeals court ruled on Friday that Dow Chemical Co. could not retroactively claim research and development tax credits for improving how it made an existing product, Reuters reported.
The Internal Revenue Service, which often fights with companies over the R&D credit, argued that the Dow unit Union Carbide Corp. improperly claimed the credit for normal manufacturing operations.
The decision could have a broad impact for manufacturing companies.
"All manufacturers have a vested interest in this case, not just chemical, but really anyone who incurs R&D that''s related at all with production process," said Jeff Malo, a director with tax advisory firm WTP Advisors.