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.
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.
Does your dairy company undertake activity intended to develop a new or improved product or process for yourself or your customer?
At first glance, it may seem unlikely that the poultry industry would have much in common with federal and state research and development (R&D) tax credits. After all, for years, R&D tax credits have been associated with large manufacturing, high-tech and medical companies. However, businesses engaged in the poultry industry are ripe with qualifying opportunities for valuable tax credits associated with the activities they conduct for improved products and/or processes.
If your company conducts activities within the winemaking industry there is a strong likelihood that your company can take advantage of the R&D tax incentive.
Consider making the R&D tax credit part of your long-term strategic planning and make sure you’re not leaving money you’ve earned on the table.
Many companies that manufacture plastic injection molds do not realize that their business is filled with R&D activities that qualify for valuable tax credits—credits that could be used to reinvest in their business.
Plant based food businesses must be able to change and adapt to the new dietary trends and consumers’ ever-changing personal eating habits. These efforts to create better plant based products or more nutritious products typically involve extensive experimentation and testing of new formulations, recipes, process parameters, and packaging methods. Research and development tax credits are available to support companies that are actively creating or improving these ways.
Does your manufacturing business improve a process or product for the automotive industry? Do you work to make an automotive product cleaner or more efficient? Or, perhaps you provide technical solutions that make production work more efficiently. If you are conducting any of these activities, are you taking advantage of the research and development (R&D) tax credit?
Does your aerospace business resolve technological challenges through the innovative use of processes and products? Despite its name, the research and development (R&D) tax credit program includes far more activities than research, patents and laboratory work.
