When you hear the words, "R&D tax credits," if you think of aggressive tax planning, you are not alone; however, you would be mistaken. In fact, the misconception that tax relief involves aggressive tax planning is a common one. It seems every day there is news of a corporation trying to dodge paying their 'fair' share of taxes by using aggressive tax planning. While it is true that some companies may push the envelope of what is legal and perhaps moral when it comes to paying taxes, this has nothing to do with R&D tax credits.
Michigan has taken a significant step towards fostering innovation and supporting businesses with the recent enactment of R&D tax credits. This move marks the revival of R&D credits in the state, which had expired over a decade ago. The introduction of these tax credits aims to encourage research and development activities, spur economic growth, and make Michigan a more attractive destination for businesses, both existing and new.
Only a third of those eligible for R&D Tax Credits are claiming them. Don't miss out on this great opportunity because of lack of knowledge. Request a FREE, No-Risk Assessment or contact Tax Point Advisors' directly. We'll help you determine your Qualified Research Activities and estimate the amount of the R&D credits for which you are eligible. We'll send a team out to interview key personnel before we advise you about potential tax savings and the benefits of doing an R&D Tax Study. There is no cost and no obligation. We are so confident that we can save you money, that there is no charge for the assessment. Contact us today to see how much you can save!
Some companies are hesitant to utilize the R&D tax credit because they have the misconception that R&D tax credits are invisible. While this has been an issue in the past, changes in the tax code have made this a misconception. Now it is easier than ever to demonstrate to senior management the advantage of R&D tax credits.
In recent years, the state of Utah has made significant strides in promoting research and development (R&D) activities within its borders. One of the key strategies adopted by the state is the provision of R&D state tax credits to businesses. These tax credits have proven to be a powerful incentive for companies to invest in innovation and technological advancement.
Are you afraid to claim the R&D tax credits?
If you are, you are not alone. Many companies in the U.S. are afraid to claim the R&D tax credits that are truly theirs because they don't want the hassle and expense of an audit. According to the IRS, only about 10% of eligible companies claim the R&D tax credits. That's a sad statistic considering how lucrative these tax credits are, and how businesses need cash during these hard economic times. This low number of taxpayers claiming their R&D tax credits falls in two categories -- they don't know about them, or they are afraid they will get denied in an IRS audit. The R&D tax credits are one of the most lucrative credits available to businesses.
In recent years, the manufacturing industry has witnessed a revolution with the emergence and wide adoption of 3D printers. These innovative machines have transformed the way companies design, prototype, and manufacture products. Not only has 3D printing streamlined production processes, but it has also opened up a myriad of opportunities for companies to take advantage of research and development (R&D) tax credits.
The downturn in the US economy in recent years has led U.S. game developers to seek ways of cutting costs, including sub-contracting or outsourcing game development. In order to keep these and other jobs on American soil, Congress created an R&D credit to give American companies, including game developers, a very lucrative incentive to continue their development here.
The wireless communications industry has been research-driven for the past 20 years. The future of each company depended and continues to depend on their R&D staffs. The Information and Communication Technologies (ICT) have driven innovation around the world even affecting our social behaviors. Few, if any, industries have been and are so competitive. Product cycles are short and fast and driven by innovation. Having enough money to drive the research is crucial for them. This makes tax breaks like R&D credits even more important.
Cost segregation is an extremely beneficial and widely used tax strategy, used by commercial property owners to significantly reduce taxable income as well as increase cash flow.
