Tax Credits

Does your business qualify for rebates & incentives?

We work closely with Project Blue to identify if your business might qualify for government mandated rebates and incentives.

With over 70 different Tax Credits programs we can go through your business and identify which of these programs you could be eligible to take advantage of.

What qualifies as R & D?

If your company is involved in any of the following activities, you may be able to claim the R&D tax credits:

Developing an innovative product that is new to the market
Engineering and designing a new product
Research aimed at discovering new knowledge
Searching for ways to apply new research findings
Designing product alternatives
Evaluating product alternatives
Significant modifications to the concept or design of a product
Designing, constructing, and testing preproduction prototypes and models
Engineering activity to advance the product’s design to the point of manufacture
Systems processing modeling
System and functional requirements analysis
Integration analysis
Experimenting with new technologies
Experimenting with new material and integrating the material to improve manufactured products
Developing new production processes during prototyping and preproduction phases
Research aimed to significantly cut a product’s time-to-market
Research aimed to obtain more efficient designs
Developing and modifying research methods / formulations / products
Paying outside consultants / contractors to do any of the above activities
Engineering to evaluate new or improved specification/modifications in terms of performance, reliability, quality, and durability.

What are the benefits of the R&D tax credit?

Granting businesses tax credits for research and development is generally thought to help the overall economy by increasing innovation.

However, some business groups have said these benefits may be lost under the new amortization rules in the TCJA.

Starting in 2022, the TCJA will require that businesses amortize their research and development costs over five years, rather than deducting them immediately.

Analysis by the Tax Foundation, an independent tax policy research organization, says canceling the amortization rules will benefit both businesses and workers by increasing economic output and wages.

Businesses that currently claim the R&D credit, however, benefit from reduced tax liability. This makes it a source of cash for many small and midsize businesses.

The R&D credit does the following:

Reduces your federal and state taxes for the current year as well as future years
Increases your company’s market value and cash flow
Lowers your business’s effective tax rate
Allows you to keep more of your profits

Need Some Advice? get in touch with us

Book a friendly, informal chat today. We’ll help you understand the Tax Credit options and explain the process.

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