Innovators. Problem solvers. Creative thinkers. Engineers are often described by these attributes, and many of the activities they perform on a daily basis may qualify for valuable research and development (R&D) tax credits.
How do you know which of your clients (or prospects) are likely candidates for federal and state R&D tax credits? IRS code changes have broadened the definition of qualifying activity—and keep in mind that over 70% of states now offer a credit, adding value to the consideration of an R&D tax credit study.
Whether you are a CPA firm with qualifying clients or a business applying directly for tax credits, it is valuable to have the guidance of a professional firm that can offer full audit representation. Here are some best practices you should consider in seeking representation.
Contractors can gain considerable benefits through federal and state research & development (R&D) tax credits. Knowing the specifics about eligibility, which party has rights and risks and how the credits are calculated can go a long way in maximizing your tax savings.
It is critical that U.S. manufacturers understand that remaining competitive in the ever-changing global economy will require that they expand their investments in R&D strategies. As business leaders and public policy makers examine strategies to accelerate manufacturing growth, one of the best strategies is through the newly expanded R&D tax credit.
Does your Pennsylvania business engage in research and development (R&D) activities? If so, you could qualify for significant tax savings through the Pennsylvania R&D tax credit program.
A growing trend for biotechnology and pharmaceutical companies is the move away from putting most investment resources behind one or two super drugs. Instead, they are diversifying behind a more comprehensive portfolio of products. Not surprisingly, there is a host of R&D activities that must take place to vet and launch each product, and many of these activities may qualify for the R&D tax credit.
As a business owner, as long as you meet the IRS’ four-part test for eligibility, you may qualify for hundreds of thousands of dollars that you can use to further grow and invest in your business. Despite this lucrative opportunity, there is still one thing that holds some companies back—the fear of being audited. Understanding this concern, Tax Point Advisors provides the following answers to the question, “Will filing for R&D credits increase my chance of being audited?”
The manufacturing industry has increasingly embraced data interconnectivity as a way of achieving greater efficiencies and meeting customers’ needs. Manufacturers of all sizes are integrating the Internet of Things (IoT) – the connection of devices to the internet and each other – and other “smart” manufacturing technology into their daily operations. Yet as they do so, they are also exposing their operations to greater security vulnerabilities.
The IRS recently released IR-2024-203 and announced that the Service is making progress with Employee Retention Credit (ERC) claims. In short, the Service is taking affirmative steps to both prevent improper payments while at the same time, accelerate the processing of legitimate claims.
