Judges Probe Customer Use in Software Tax Credit Appeal (1)

A panel of federal appeals court judges during oral arguments Tuesday scrutinized whether software offered by a pharmacy benefits management company is directly used by customers, and whether that use qualifies for a $42.9 million tax credit reserved for domestic production activities.

Sitting on the US Court of Appeals for the Eighth Circuit, Judge David R. Stras appeared skeptical of Express Scripts Inc.‘s argument that it’s plan sponsors don’t need direct access to the claims adjudication software it offers in order to be considered for a domestic production activities tax credit.

“Direct use means direct,” Stras said. “If it ...