Does your dairy company undertake activity intended to develop a new or improved product or process for yourself or your customer?
Companies engaged in the design, installation, and fabrication of HVAC systems and components may be eligible to receive a significant tax credit.
Enacted in 1981, the Federal Research and Development (R&D) Tax Credit allows a credit of up to 13 percent of eligible spending for new and improved products and processes. Companies engaged in 3D printing should be taking full advantage of all available federal and state tax credits. Problem is not many companies utilizing 3D printing even know they are qualified for these tax credits.
When the PATH Act of 2015 was enacted by Congress, it made the R&D tax credit permanent. However, other tax incentive and credit programs were left to face an uncertain future, including the popular energy tax deduction, known as the 179D Tax Deduction.
Many companies that manufacture plastic injection molds do not realize that their business is filled with R&D activities that qualify for valuable tax credits—credits that could be used to reinvest in their business.
Does your aerospace business resolve technological challenges through the innovative use of processes and products? Despite its name, the research and development (R&D) tax credit program includes far more activities than research, patents and laboratory work.
Companies investing in creating new products in Illinois have been at a disadvantage since the valuable R&D tax credit program expired in 2015. Now that has all changed.
Tax reform is in the air. While we don’t yet know how it will play out, business owners should take note of the bipartisan support for an incentive to increase the productivity of U.S. companies in a wide range of industries—the R&D tax credit.
It is an exciting time for research and development in the aerospace industry—with strong growth in 2016 after several years of stagnancy, the outlook is healthy for the development of groundbreaking technology.
There is one thing that may hold some business owners back—the fear of being audited by the IRS. While only a small percentage of businesses that apply for R&D credits actually get audited, it is important they maintain precise documentation of R&D activities that align with qualification criteria so that if an audit is required, they are fully prepared.