Credits come with obligations
Many credits require more than eligible spending. Some federal energy-related credits carry wage and apprenticeship rules that affect the amount, and many New York incentive programs tie benefits to job creation or investment commitments. Federal legislation in 2025 changed a number of clean energy credits, including earlier end dates for some, so current rules should be confirmed before relying on earlier planning. Research credits depend on documentation showing which activities qualified and how costs were tracked. When conditions are not met, credits may be reduced or recaptured, sometimes long after the original claim.
Building a defensible file
Compliance starts when the credit is planned, not when it is audited. Keep records made at the time of qualifying activities, payroll allocations, contracts, and certifications from the agencies that run state programs. For credits that can be transferred or sold, documentation also matters to the buyer, who may rely on it. Assign someone to track ongoing requirements, such as employment levels or project milestones. IRS requirements for research credit refund claims have raised the level of detail expected even before any audit begins.
A compliance review
During a review we go through which credits you claim, the programs and agreements behind them, and any reporting or certification deadlines. We look for gaps between what was promised to an agency and what has actually happened in the business. If a shortfall is likely, addressing it early is often better than waiting for an agency to find it. We also coordinate with your accountant on how the credits are reported. Where a credit was purchased from another taxpayer, we look at what protections the purchase agreement gives you if the credit is later reduced.
