Industrial
THE R&D TAX CREDIT – NO LAB COAT REQUIRED
A common misconception is that the R&D Tax Credit only applies to developers of new products or high-tech businesses. However, many other companies have invested time, money and resources toward:
- developing new products,
- improving existing products,
- developing new materials,
- building or testing prototypes and models, or
- developing or improving manufacturing processes.
If any of these apply to your company, you may qualify for the R&D Tax Credit.
WHAT IS THE R&D TAX CREDIT?
The R&D Tax Credit is a government-sponsored economic incentive that provides permanent benefits to drive down effective tax rates and to generate cash flow.
CASH FROM THE R&D TAX CREDIT
The R&D credit reduces past, current and future years’ federal tax liabilities, creating an immediate source of cash. It’s a dollar-for-dollar offset against taxes owed! We have a client who received approximately $575,000 in R&D Tax Credits over three years – and another who received nearly $290,000 in R&D Tax Credits over the same period. Not a bad return on their investments.
KNOW WHEN TO USE THE CREDIT
Although the R&D Tax Credit can be used to reduce regular tax to zero for a tax year, it cannot be used to offset alternative minimum tax. However, unused credits carry back one year and then carry forward for up to 20 years.
FREE INITIAL ANALYSIS
We will provide a free initial analysis. As part of the initial analysis we will provide you with the estimated tax credit and the estimated cost to do the actual analysis. This way you can determine the cost-benefit of a R&D Tax Credit study for your business.
