Like the federal government, the state of Arizona provides a generous research and development (R&D) tax credit as an incentive to those who conduct R&D activities within the state. In Arizona, the R&D incentive provides an income tax credit for increased R&D activity within the state. Companies may also be eligible for a “basic research” credit if their payments made in cash to a qualified university or scientific research organization for research conducted in Arizona exceed a base period amount.
Electric vehicle (EV) charging station installations offer a great income tax credit for businesses and homeowners to attract and retain environmentally conscious consumers and employees. The 2022 Inflation Reduction Act (“IRA”) contains tax credits designed to support the widespread adoption of electric vehicles. The Alternative Fuel Vehicle Refueling Property Credit, IRC Sect. 30C, (“AFVRPC”) which the IRA expanded and extended to December 31, 2032, provides incentives to individuals and companies that install EV chargers.
Evaluation of Qualifying R&D Tax Credit Activities in the Construction Industry
Contractors that provide design-build services, use new and innovative construction techniques, and enlist engineers and architects to provide construction services are most likely to qualify for Federal and state research and development credits.
From IRS.gov:
If you filed a claim requesting a refund for an Employee Retention Credit (ERC or ERTC) and would now like to withdraw your claim, this page will tell you whether you can do so and, if so, how to withdraw your claim.
R&D provides a platform for creativity and innovation to flourish and your company to stay relevant. The research and development (R&D) tax credit provides motivation for companies to advance innovation in the United States.
Illinois is one of many states finally taking note of the R&D tax credit and how they are extremely beneficial for the economy and business growth throughout the state.
Thanks to these updated regulations, non-traditional software companies that are investing time and efforts into the development of internal use software to build and streamline their business functions, can expect to receive a substantial boost in their ability to claim R&D based tax incentives.
Using your R&D tax credit knowledge, you can then offer these specialty services to your clients. You can help with the process of capturing the correct R&D documentation throughout their daily operations and all future projects.
In a surprising move, the Internal Revenue Service (IRS) recently announced an immediate halt to the processing of new Employee Retention Credit (ERC) claims, citing suspicions of fraudulent activity and the sheer volume of claims submitted.
Once you know what type of research and projects your competitors are producing, it gives you a better perspective of where you need to put in more effort and resources with your R&D.
