Posted by William Mehi on 08.27.18
The water recycling business is brimming with opportunities to claim Research and Development (R&D) tax credits. While there are many existing technologies currently in use to safely and effectively recycle water, most create “grey water” which is useful for irrigation, creating and enhancing wetlands and replenishing groundwater sources. This is valuable and necessary, but the need for clean drinking water in the United States is far greater than it has ever been, due to population growth, dry weather and aging water treatment and delivery systems. The benefits and profit potential for providing clean drinking water from recycled water are immense. Innovative technologies that help to solve this problem are in high demand. Get the R&D tax credits your business deserves for your invested time, effort and resources.
The R&D tax credit was instituted by the federal government to stimulate the United States’ economy through innovation. The idea being that: by providing companies that were ready and willing to invest in improving their processes and developing new products with tax incentives, technology would progress and the nation would advance economically. In 2015, after many extensions on the temporary bills that would become the R&D credit, it was made permanent by the U.S. Congress and is now a dollar-for-dollar benefit against tax.
Many activities in the water recycling industry will qualify for the R&D tax saving credits, including:
The activities and associated expenditures (derived mostly from employee time, consultant expenses and related R&D supplies) of a company can qualify for the R&D tax credit if the activities meet the requirements of the four part test established by the IRS:
Opportunities to claim the Research and Development (R&D) tax credits for the water recycling industry are abundant. Creating a new process for the sanitation of non-potable water, transforming it into clean drinking water and creating more efficient and cost-effective desalination techniques are just a few activities performed that can qualify for the R&D credit. The possibilities for claiming the R&D tax credit in the water recycling business are many and varied.
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 800-260-4138or please leave us a message below.