Misconception: Companies that manufacture overseas aren’t entitled to R&D Tax Credits

The Research and Development tax credits were enacted in 1981 as part of the Economic Recovery Act to spur the U.S. economy and create jobs. It was intended to encourage research among U.S. companies and keep our country strong. Many U.S. companies manufacture overseas. How does this fit into the plan for the R&D tax credits?

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Tax Court Rejects Shipbuilder’s Claim For $1.1M Research Credit

Costs incurred by a shipbuilding company in developing several vessels are not qualified research expenses that would allow the business's parent company to claim a $1.1 million research tax credit, the U.S. Tax Court said Thursday.

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Misconception: R&D Credits Are Too Good to Be True

Yes, the federal government is reducing taxes for businesses with the R&D Tax Credits. It is true. This is the most lucrative tax incentive out there, and yet only a third of the eligible companies are claiming it. Unbelievable! Is it too hard to understand, too much work to prepare, or too likely to cause an unwanted audit? Let's take a look at the benefits and risks of the R&D tax credits.

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Misconception: The R&D Tax Credit Won't Help My Company's Bottom Line

Many people believe that R&D tax credits really don't help the bottom line. That's because either they don't understand what they are, or they haven't looked at the math. This misconception keeps many companies from profiting from a tax credit that could help them, because they think it isn't worth taking the time to do. Let's look closer at these credits.

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The Employee Retention Tax Credit Expanded and Extended for 2021

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 the first three quarters of 2021. One essential tax credit businesses should be aware of is the Employee Retention Tax Credit (ERTC).

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Tax Point Advisors is Now Working with CPAs and Taxpayers for Employee Retention Credits

New tax credit expansion will benefit most businesses - don't leave money on the table, call Tax Point Advisors for your free assessment.

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CAA 2021:  Its Impact on 45L & 179D Greenbuilding Tax Incentives

The passing of the COVID-relief package titled the ‘Consolidated Appropriations Act, 2021‘ (“CAA 2021”) extended the §45L Energy Efficient Home Credit (§45L Credit) through December 31, 2021 and made permanent the §179D Energy Efficient Commercial Building Deduction (§179D Deduction). These two valuable tax incentives encourage energy efficient design in both residential and commercial construction. 

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Second Covid Relief Bill Passed into Law

By now everyone has most likely seen that President Trump finally signed the second covid relief bill (Consolidated Appropriations Act or “CAA”) and passed it into law. While this is obviously good news for millions of Americans during this pandemic, this new law has HUGE implications to corporate 2020 R & D tax credit study.  

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Congress Gets It Right with the Latest Covid Tax Relief Bill

There are many intriguing tax provisions which appear in year-end coronavirus relief bill, which was just passed by Congress and enacted into law with the President’s signature.

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Misconception: Only companies that increase research from year-to-year can qualify.

There are so many misunderstandings about what is required to qualify for R&D tax credits that it is a wonder anyone applies for the R&D tax credit.  These misunderstandings are far more critical than the misunderstanding you had with your wife when she used hot sauce instead of BBQ sauce on your ribs. This misunderstanding costs companies thousands of dollars in lost cash that they need for their businesses. The myths abound. One frequently circulated myth is that a company must increase its research in order to qualify for the R&D tax credits again the next year. This is far from the truth.  Questions about qualifications need to be asked to an experienced tax credit consultant like Tax Point Advisors in order to not make a mistake with your tax credits or to miss an opportunity for one of the most lucrative tax incentives out there.

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