Often, R&D credits are mistakenly assumed to apply only to the creation of a new product, but package designs for the products can also qualify for tax credits in a number of ways.
Arizona offers a variety of tax credits, including R&D tax credits, to businesses and organizations that are looking to maximize their savings. R&D tax credits are available for research and development activities, and they provide businesses in Arizona with a powerful incentive to invest in new products, processes, and technologies. By understanding how these tax credits work, businesses in Arizona can significantly reduce their taxes and better leverage their investments in research and development.
If your company is conducting 3D metal printing research and development activities, you may qualify for and benefit from R&D tax credits.
Solar technology companies are an integral part of the renewable energy industry and often do not realize that their day to day activities could be eligible for federal and some state R&D tax credits.
There are many qualified activities cabinet and furniture businesses may not be aware of and eligibility isn’t limited to just the manufacturing area.
Most contractors in the construction industries, including HVAC companies, don’t know that their day to day activities can qualify them for federal, and in some cases state, R&D tax credits.
CPA firms and their clients often need outside expertise when it comes to specialized tax services. Deciding on the right partner to manage your specialty tax credits can be intimidating, especially with the growing number of online pop up tax firms competing for your business. A study done by a very large firm can be expensive, while a study done by a smaller local mom and pop shop may not yield the maximum benefits and studies performed by either may run the risk of an IRS audit. Choosing a tax partner that can work seamlessly with your company can offer great value as well as save you time and money in the long run. To help select the right partner, there are three key attributes to consider the firm’s experience with the specialty tax credits your company is attempting to qualify for, the approach they take doing studies and organizing the documentation; and most importantly the fee structure for these services they will be providing your company.
The Energy-Efficient Commercial Buildings 179D Tax Deduction, is a tax incentive first introduced in 2005 as part of the Energy Policy Act. Section 179D provides taxpayers with an incentive to make commercial building property more energy efficient. The Sec. 179D deduction has been in effect since Jan. 1, 2006, and then was made permanent as part of the Consolidated Appropriations Act in 2021. Congress recently passed the Inflation Reduction Act (IRA) which included a number of significant changes to Section 179D seeking to drive massive reductions in energy costs of homes and buildings across the United States. The Inflation Reduction Act’s modifications and new provisions under 179D create additional tax savings opportunities for taxpayers that invest in energy-efficient building construction projects. The IRA will transform markets across the U.S. Especially in the construction industries with tax incentives and rebates for investments in better building codes as well as improvements to public buildings nationwide.
Many of the activities conducted by restaurant technology and software companies qualify for the R&D tax credit.
Thanks to House Bill 2400, beginning January 1, 2023, Missouri taxpayers can take advantage of research and development tax credit. This new law essentially reinstates the previous 2004 state tax credit for qualifying activities conducted in the state.
