I'm trying to understand how Federal Increasing Research Activities Credits work for an S-Corporation. I'm seeing a lot of messages in tax software that disallows the credit due to limitations under IRC Section 41 (g), but nowhere on the web or in the tax software do I get a decent explanation of what those limitations might be.
For Federal and California State research tax credits, is the shareholder in the S-Corporation supposed to be able to carry these forward to future years, if there is a current year loss or other reason to disallow the credit for the current year?