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.
R&D provides a platform for creativity and innovation to flourish and your company to stay relevant. The research and development (R&D) tax credit provides motivation for companies to advance innovation in the United States.
Any company producing new antibiotics or infection fighting equipment, utilized to combat COVID-19 are certainly at the forefront of all medical research being conducted in the U.S. currently. These lifesaving efforts can be supported by the R&D tax credits.
Manufacturing companies are responding by pivoting their operations to produce products to help in the fight against COVID-19.
CPAs: Are your clients missing the opportunity to claim valuable tax credits?
During these times of uncertainty Tax Point Advisors is continuing to offer their expert tax advice via tele-services.
A significant but often overlooked financial incentive to energy efficient builders and contractors is the 45L tax credit. This tax credit is for owner occupied or rental dwelling buildings that meet certain energy saving standards.