Posted by Jeffrey Feingold on 02.02.22
As we addressed in a previous blog, “Do Your Business Activities Qualify for R&D Tax Credits?,” if your company has invested money, time and resources in activities that help invent or improve a process, product, technique or formula, you stand a good chance of qualifying for valuable research and development (R&D) credits.
R&D tax credits can immediately benefit a company as a significant source of cash for reinvestment or other needs. They also provide a significant reduction to current and future tax liabilities. Tax Point Advisors has been able to help companies claim significant tax credits ranging from tens of thousands up to millions of dollars.
Through the following examples, we hope you will gain a deeper understanding of the outstanding opportunity that is available for your company for your eligible activities.
Construction
This world-class mechanical construction firm was able to claim credits in excess of $1 million after Tax Points Advisors determined that the company could go back to several closed years and carry forward credits without having to amend any of the closed year returns. Read the full success story.
Manufacturing
Through its custom work, this manufacturing and custom job shop company builds a prototype, modifies and re-engineers as needed, then manufactures the end result. Tax Point Advisors was able to uncover 16 percent more R&D tax credits over the high end of the original estimate. Read the full success story.
Contractor
Tax Point Advisors determined that this leading electronics, electrical and telecommunications contractor could go back to certain closed years and carry forward R&D tax credits. This resulted in an additional $300,000 in credits above the original six-figure estimate. Read the full success story.
Architecture
This small firm was able to receive a low six-figure refundable state credit for a one-year study, and Tax Point Advisors found approximately 34% of additional credits above the original estimate. Because Tax Point Advisors (unlike many of its competitors) charges a fixed-fee, this increase in credit return posed no additional cost to the client. Read the full success story.
Software Development
The software created and designed by this developer supports thousands of retailers on a daily basis. Through a tax credit study, Tax Point Advisors was able to find $566,000 in federal and state tax credits for the company. Read the full success story.
As you can see, R&D tax credits offer a tremendous opportunity to companies for activities they perform on a regular basis. At the same time, determining which activities qualify and then completing the necessary documentation can seem daunting. A qualified R&D tax credit professional can guide you through this process by conducting a thorough tax credit study.
Find Out if Your Activities Qualify
The R&D tax credit can be a lucrative incentive for innovative businesses. Given the new permanent nature of the federal tax credit, now is the time to consider whether activities performed by your company qualify for major cash-saving tax credit opportunities.
Tax Point Advisors, a firm with expertise in working with small and midsize companies, works with businesses that may qualify for R&D tax benefits. For more information, call us at 800-260-4138 or please leave us a message below.
