Rhode Island enjoys a wealth of strategic advantages for businesses engaged in research activities of all sizes and scopes. Its centralized presence in the Northeast U.S. provides easy access to key centers of national and international commerce. It enjoys the Northeast’s lowest corporate tax rate. Its renowned academic institutions are havens of innovation and serve as incubators for many innovative startups.
With so many tax proposals swirling around in Washington, the business world is in a wait-and-see mode to see how it all falls out. While tax reform could very well do away with many of the tax credits businesses utilize, there is nothing in these proposals that would negatively impact the valuable research and development tax credit.
For a long time, R&D tax credits were mostly associated with large companies conducting research in software, manufacturing, pharmaceutical and high-tech companies. As a matter of fact, many activities associated with agriculture can and do qualify. When you stop to think about it, R&D is essential to driving technological change in agriculture, and many people working in the industry engage in R&D activities on a weekly basis—activities that could qualify for a significant tax credit.
Small Business Week, which runs now through May 6, is an excellent time for Tax Point Advisors to remind small businesses of an outstanding opportunity to claim valuable tax credits for eligible R&D activities.
The federal tax code has included R&D tax credits to businesses for more than three decades. Contrary to a common misperception, however, R&D tax credits are not limited to scientists and laboratory-based researchers. In fact, many of the activities conducted by architecture firms qualify, and the benefit can mean tens of thousands of dollars in tax savings.
It has been well over one year since Congress enacted legislation making R&D permanent. With the many questions surrounding these new enhancements, Tax Point Advisors offers the following clarifications to help business owners understand whether they may utilize the credit.
Tax Point Advisors, a leading expert in research and development (R&D) tax credits and specialty tax services, has hired Shaun Yeh to head its southern regional office.
New IRS guidance, Notice 2017-23, eases the way for small businesses to benefit from a new option that allows them to apply a portion or all of their R&D tax credits against their payroll tax liability, rather than their income tax liability.
In welcome news for taxpayers who work for themselves and businesses with assets under $10 million, the IRS has made permanent an expedited process it had been pilot testing by which small businesses and self-employed individuals (SB/SE) can resolve tax disputes.
Software development is often overlooked when it comes to research and development (R&D) tax credits, which is rather ironic when you think about the innovation, creativity and invention that is such an intrinsic part of this industry. Any time your software company makes improvements to products or processes, there is a good chance that your activities may qualify for valuable R&D tax credits that can greatly reduce your tax burden.