Does your Pennsylvania business engage in research and development (R&D) activities? If so, you could qualify for significant tax savings through the Pennsylvania R&D tax credit program.
A growing trend for biotechnology and pharmaceutical companies is the move away from putting most investment resources behind one or two super drugs. Instead, they are diversifying behind a more comprehensive portfolio of products. Not surprisingly, there is a host of R&D activities that must take place to vet and launch each product, and many of these activities may qualify for the R&D tax credit.
As a business owner, as long as you meet the IRS’ four-part test for eligibility, you may qualify for hundreds of thousands of dollars that you can use to further grow and invest in your business. Despite this lucrative opportunity, there is still one thing that holds some companies back—the fear of being audited. Understanding this concern, Tax Point Advisors provides the following answers to the question, “Will filing for R&D credits increase my chance of being audited?”
The manufacturing industry has increasingly embraced data interconnectivity as a way of achieving greater efficiencies and meeting customers’ needs. Manufacturers of all sizes are integrating the Internet of Things (IoT) – the connection of devices to the internet and each other – and other “smart” manufacturing technology into their daily operations. Yet as they do so, they are also exposing their operations to greater security vulnerabilities.
The IRS recently released IR-2024-203 and announced that the Service is making progress with Employee Retention Credit (ERC) claims. In short, the Service is taking affirmative steps to both prevent improper payments while at the same time, accelerate the processing of legitimate claims.
While most CPA firm leaders are aware R&D tax credits exist, they either lack the knowledge or manpower to get their clients involved in the process. Yet, many of the activities your clients already perform on a daily basis qualify R&D credits, and if you don’t offer this attractive tax credit to your clients, someone else likely will.
Less than 33% of companies that qualify for the federal R&D tax credit actually utilize it, due to misconceptions about qualification and the complexity of necessary documentation. The following answers set the record straight.
New Jersey State Tax Credit offers incentives to promote business development and job creation. There are many tax credits available for different industries.
A taxpayer that has performed qualified research activities in New Jersey may be eligible to claim the R&D Tax Credit New Jersey. A credit for increased research activities is allowed based on qualified expenditures made in taxable years beginning on and after January 1, 1994. It provides a credit of 10% of the excess qualified research expenses over a base amount plus 10% of the basic research payments. If the research credit cannot be used because of tax liability limitations, it may be carried forward for either 7 or 15 years.
Governor JB Pritzker recently signed a game-changing bill to supercharge Illinois' tax credit programs and lure cutting-edge tech businesses to the state. This bold move aims to turn Illinois into the next Silicon Valley with major investments in quantum research and electric vehicle manufacturing.
The Research and Development tax credits were enacted in 1981 as part of the Economic Recovery Act to spur the U.S. economy and create jobs. It was intended to encourage research among U.S. companies and keep our country strong. Many U.S. companies manufacture overseas. How does this fit into the plan for the R&D tax credits?
