R&D tax credits represent a significant financial advantage to a business, yet less than 33% of companies that qualify actually apply for them. Find out whether the activities your business performs entitle you to keep more of the money you earn.
Tax Point Advisors is passionately committed to determining as accurate a credit yield estimate as possible before making a recommendation to move forward with a tax credit study.
Our history has also taught us that a company’s revenue size is not necessarily an indication of its potential credit yield, with many small clients often enjoying six, and in some cases even seven-figure, credit yields.
Conversely, a large initial credit yield estimate may or may not always be substantiated during the study process because of a larger degree of variables used during the estimation modeling.
Tax Point Advisors has created a conservative, but also extraordinarily accurate, credit yield estimation model. In order to favor a conservative approach, only wage expense is typically considered as part of our initial credit estimate. The additional potential of supplies and contractor expenses that also count for R&D, and which very often increases credit yields, are typically not considered in our initial estimates.
This is a great approach for clients, as any increase in credit yield as a result of these additional expenses is identified and documented at zero cost to the client. That’s because our fixed fee remains fixed if the actual credit yield comes in at or above our estimate. (We do, however, in some cases include these additional expense components when they are of such a material amount as to warrant inclusion for modeling purposes.)
Below is a short sample of actual client credit yields for R&D tax credit studies conducted in the past year. The table illustrates the accuracy of our estimating model. We are happy to furnish CPA and client references from the list below.
|Industry:||Revenue:||Estimated Credit:||Annual Credit:|
|MFR-Building Materials||$50 Million||$200,000-$300,000||$195,271|
|MFR-Optic Components||$8 Million||$175,000-$300,000||$282,521|
|MFR-Robotic Devices||$20 Million||$600,000-$900,000||$974,000|
|Bakery Products||$28 Million||$50,000-$100,000||$169,343|
|GIS Mapping||$6 Million||$100,000-$200,000||$279,524|