The wireless communications industry has been research-driven for the past 20 years. The future of each company depended and continues to depend on their R&D staffs. The Information and Communication Technologies (ICT) have driven innovation around the world even affecting our social behaviors. Few, if any, industries have been and are so competitive. Product cycles are short and fast and driven by innovation. Having enough money to drive the research is crucial for them. This makes tax breaks like R&D credits even more important.
When it comes to the United States tax code, many businesses throw their collected hands up in the air and say, "I give." This is even truer when it comes to R&D tax credits. For many businesses, they simply believe the system is too complicated for us to claim R&D tax credits. While the ins and outs of tax law can take some time to understand, they are not so complicated that they should not be taken advantage of.
The downturn in the US economy in recent years has led U.S. game developers to seek ways of cutting costs, including sub-contracting or outsourcing game development. In order to keep these and other jobs on American soil, Congress created an R&D credit to give American companies, including game developers, a very lucrative incentive to continue their development here.
Cost segregation is an extremely beneficial and widely used tax strategy, used by commercial property owners to significantly reduce taxable income as well as increase cash flow.
The R&D Tax Credit Ohio is available annually and is based upon qualified research expenses in Ohio allowed under section (s.) 41 of the Internal Revenue Code (IRC). The Ohio Research and Development Investment Tax Credit, which is authorized within Section 5751.51 of the Ohio Revised Code, is a nonrefundable credit against the Commercial Activity Tax (CAT). Qualifying expenses fit into two categories: in-house research expenses and contracted research expenses.
Going green has been viewed by many as the way to pull us out of economic problems, to create new jobs, to compete in a global market, and to save the planet. This has led the U.S. government to offer expanded tax credits for green building and green technology.
Some taxpayers may have a reduced 2019 R&D tax credit as the result of a negative impact of the Payroll Protection Plan loan program, an impact unintended by Congress.
Like the federal government, the state of Arizona provides a generous research and development (R&D) tax credit as an incentive to those who conduct R&D activities within the state. In Arizona, the R&D incentive provides an income tax credit for increased R&D activity within the state. Companies may also be eligible for a “basic research” credit if their payments made in cash to a qualified university or scientific research organization for research conducted in Arizona exceed a base period amount.
Evaluation of Qualifying R&D Tax Credit Activities in the Construction Industry
Contractors that provide design-build services, use new and innovative construction techniques, and enlist engineers and architects to provide construction services are most likely to qualify for Federal and state research and development credits.
On July 23, U.S. Rep. Jackie Walorski (R-IN) along with cosponsor Rep. Jodey Arrington (R-TX) sponsored H.R. 7766. This legislation would double the traditional research and development tax credits, and make it easier for small businesses and start ups to access the tax credit incentive.