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.

Tax Credits

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. 
tax credits benefits
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

Saunders Accountancy Corporation can help! If you’d like to receive more information about our Tax Credits Service, please complete the form below:

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.

WORDS FROM OUR HAPPY CLIENTS...

She is all about Saving and Growing her clients Money

“Evelyn is an incredibly knowledgeable CPA with great expertise in tax planning . She provides free analysis on your personal taxes or company structure. She is all about saving and growing her clients’ money and I highly recommend!”