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.
With many American businesses around the country struggling due to the COVID-19 pandemic, the U.S. government responded by passing multiple stimulus packages and tax credits throughout 2020 and now into 2021. One essential tax credit businesses should be aware of is the Employee Retention Tax Credit (ERTC) which has now been extended through the first three quarters or 2021 at a potential value of up to $26,000 per employee.
Rhode Island enjoys a wealth of strategic advantages for businesses engaged in research activities of all sizes and scopes. Its centralized presence in the Northeast U.S. provides easy access to key centers of national and international commerce. It enjoys the Northeast’s lowest corporate tax rate. Its renowned academic institutions are havens of innovation and serve as incubators for many innovative startups.
There is one thing that may hold some business owners back—the fear of being audited by the IRS. While only a small percentage of businesses that apply for R&D credits actually get audited, it is important they maintain precise documentation of R&D activities that align with qualification criteria so that if an audit is required, they are fully prepared.
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.
As one of several refundable credits available in the state of New York to reduce income tax, the New York Excelsior R&D credit program is one of the best tax credits in the Northeast. New York’s Excelsior Jobs Program encourages businesses to expand in and relocate to New York while maintaining strict accountability standards to guarantee that businesses deliver on job and investment commitments.
To qualify for any of the four programs under the New York Excelsior Jobs Program, businesses must meet and maintain certain established job and investment thresholds.
Doug Samson, Vice President, Western Region at Tax Point Advisors discusses the latest tax credit and incentive news with Bob Friedenthal.
Has your company constructed, purchased, expanded or remodeled real estate? If so, you may be eligible for ten, or even hundreds of thousands of dollars in tax savings through a cost segregation study.
