Contrary to popular belief, a company does not have to manufacture an end product to qualify for tax incentives. Companies in the metal fabrication industry develop significant research and development (R&D) processes and process systems—activities that could qualify for valuable federal and state R&D tax credits.
If you knew you could save your business hundreds of thousands of dollars by doing what you already are doing, wouldn’t you jump at the chance?
Most companies are completely unaware that they can save significant money – even up near the seven-figure range – simply by applying for credit for activities related to research and development (R&D) they already are doing. In fact, most of our clients claim a gross credit of 10 percent of their R&D spend.
Does your manufacturing business resolve technological challenges through the innovative use of products and processes? Many manufacturers do not realize the R&D tax credit extends beyond basic research to include applied research.
Have any of your current clients constructed, purchased, expanded or remodeled real estate? If so, they may be eligible for ten, or even hundreds of thousands of dollars in tax savings through a cost segregation study. Tax Point Advisors works with CPA firms and business owners to coordinate cost segregation studies, to uncover potential tax savings and significantly increase cash flow through reclassification and depreciation of properties.
Innovators. Problem solvers. Creative thinkers. Engineers are often described by these attributes, and many of the activities they perform on a daily basis may qualify for valuable research and development (R&D) tax credits.
How do you know which of your clients (or prospects) are likely candidates for federal and state R&D tax credits? IRS code changes have broadened the definition of qualifying activity—and keep in mind that over 70% of states now offer a credit, adding value to the consideration of an R&D tax credit study.
Whether you are a CPA firm with qualifying clients or a business applying directly for tax credits, it is valuable to have the guidance of a professional firm that can offer full audit representation. Here are some best practices you should consider in seeking representation.
Contractors can gain considerable benefits through federal and state research & development (R&D) tax credits. Knowing the specifics about eligibility, which party has rights and risks and how the credits are calculated can go a long way in maximizing your tax savings.
It is critical that U.S. manufacturers understand that remaining competitive in the ever-changing global economy will require that they expand their investments in R&D strategies. As business leaders and public policy makers examine strategies to accelerate manufacturing growth, one of the best strategies is through the newly expanded R&D tax credit.
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.
