In a ruling that observers say adds new clarity to how judges and the Internal Revenue Service see company bids for federal research-and-development tax credits based on perceived contract risk in doing research, an Atlanta federal appellate court on Jan. 29 backed the government's claim that one firm's work was all client-funded and didn’t qualify for a refund.
The ruling by the 11th U.S. Circuit Court of Appeals against Atlanta-based Geosyntec Consultants affirms a similar position by a Florida lower court, which last year decided the firm's research already was covered by clients and rejected its bid for close to $1.7 million in federal tax credits to cover claims of financial risk on several cost-plus contracts.