[IMGCAP(1)]The widely followed R&D Tax Credit case involving Union Carbide Corporation and the cost of supplies used during production has finally come to an end. On March 18, the Supreme Court denied review of the Second Circuit Court of Appeals decision, which had affirmed the earlier Tax Court ruling.

In the case, Union Carbide contended that it was developing and improving multiple manufacturing processes. During the evaluation of the new and improved processes, the taxpayer manufactured the product and claimed that the raw materials used to produce goods in testing the processes were supply costs that qualified for the research credit.

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