Posted by Jeffrey M. Feingold on 12.18.10
Tax Point Advisor's R&D Tax Credit client, Yushin America, was featured by the New York Times as an example of the benefits of Obama's tax cut package.
Yushin America is a Rhode Island company that produces and maintains robotic manufacturing equipment. Tax Point helped Yushin America identify a high six-figure credit as a result of an R&D Tax Credit study, and Yushin tells the New York Times that these credits are "a chance for us to put it back into the business and grow". They expect to use the credits to invest in new machinery, new employees, and a new roof; they anticipate hiring at least four new engineers for their sixty-employee company.
Rhode Island's WPRI News picked up the story, and asked Yushin how this small Rhode Island company made it into the Times article. Yushin credited Tax Point Advisors, who, when contacted by the Times for a concrete example of how the proposal could encourage additional spending by manufacturing companies, highlighted the Rhode Island company.
Jeffrey Feingold, Founder and Managing Partner of Tax Point Advisors, notes "This current tax package contains an extension of the Federal Research and Development Tax Credit, which is a vital element of the continued economic recovery of the United States. Thousands of companies benefitting from the credit are small to mid-size employers; these companies are the primary engine of job creation and growth during any economic recovery and expansion."
"Approximately 25% of the businesses currently taking the credit have assets under $1 million, and include often-overlooked qualifying industries such as package design, engineering services, plastic mold injection, tool & die, and architectural" says Feingold. "These companies often think they do not qualify because they often do not own the product or deliverable that they develop for their clients, but there is underlying custom design and engineering activities that qualify for the credit. CPAs and their clients who work on new, improved or customized products or processes should seriously investigate the tax benefit, as they may qualify for up to six- or seven-figure credits, for which they often don't realize they are eligible."
This year is the first time that 22 year-old Yushin America applied for the credit, and they acknowledge that it was thanks to the way that Tax Point helped management figure out how they qualified.
Contact Tax Point Advisors at 1.800.260.4138 or at firstname.lastname@example.org to see how you or your client may qualify for R&D Tax Credits.