From USGBC: Democrats are starting to show their cards for addressing climate change with the tax and spending legislation—referred to as the “budget reconciliation” bill— that’s moving through the U.S. Congress. In a series of committee texts released in recent days, the House of Representatives proposed a host of investments and incentives for upgrading homes and buildings alongside dozens of proposals promoting electric vehicles, energy storage, renewable power and a more dynamic electric grid.
It is always prudent and necessary to look for all possible tax deductions to offset the amounts of tax we pay. It is also extremely beneficial to find tax credits to apply. As a California S corporations that does research and development activities, you have some options available to you that can save thousands of dollars.
The Internal Revenue Service (IRS) has issued new filing requirements for any taxpayer filing an IRC Section 41 R & D tax credit claim. While the R & D tax credit and IRC Section 41 has been available for decades this is the first time in quite a while where the Service is asking for specific and detailed information like this, on the actual tax filing. The Service’s overall goal is to reduce the large number of audits on the R & D claims and instead, determine upfront if such a claim should be accepted or whether further review is required before approval.
Choosing an R&D tax partner that can work seamlessly with your firm can offer great value to both your firm and your clients. Here are seven important qualities to keep in mind when choosing the right R&D expert.
Companies engaged in research and development (R&D) activities in the state of Texas can receive reductions in either applicable sales tax or franchise tax with certain qualifications. The Texas R&D credit represents an outstanding opportunity for taxpayers to receive credit for qualified research expenses they are conducting. This incentive is in addition to the federal R&D tax program, which Congress made permanent in 2015.
As an industry significantly invested in research and development (R&D) activities, aerospace companies can further reinvest in their growth by qualifying for federal and state R&D tax credits.
Many companies that otherwise would qualify for valuable research and development (R&D) tax credits never bother to apply for them. What would cause a business owner to leave thousands or even millions of dollars on the table? The culprit is often the federal government’s requirements for the documentation of a company’s qualifying activities. While the need for documentation is certainly instrumental to the IRS’ approval process, the lack of understanding about what documentation entails needlessly keeps many out of the R&D credit arena.
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.
Like the federal research and development (R&D) tax credit, the state of California provides a tax credit as an incentive to those who conduct research and development activities within the state. In fact, the 15% credit rate (regular credit only) for excess expenditures over a base, is one of the best credits in the nation. While the state and federal credits share some common requirements and incentives, the California Research Credit has some separate requirements.
