2018 Key Takeaways for the Research and Development Tax Credit The R&D Tax Credit is constantly changing. While much of the tax code is antiquated, portions of the tax code, such as the research credit can be manipulated to reflect changing economic conditions. Over the last couple of years, we have…
Brewing companies perform daily research, not as a separate task, but as everyday improvement activity for their products. Thus, making this industry a strong contender for the Research and Development (R&D) Tax Credit. Many companies are unaware of this government incentive since there is a misconception that employees need to…
The Research and Development (R&D) Tax Credit was made permanent in December 18, 2015. There are new and enhanced provisions for companies of all sizes, making the incentive more significant than ever before. This is especially important for companies in the waste management industry which constantly come up with new…
You had me at Merlot! But what is this you say? My varietal is eligible for R&D Tax Credits too? I’ll cheers to that! The history of the winemaking industry stretches over millennia. Methods and processes created spanning centuries are still very much in use today.Winemaking can be divided into two general…
To qualify for the Research and Development Tax Credit an activity must meet all four items of the “Four-Part Test”. The IRS Four-Part Test requires: a new or improved business component (product, process, technique, invention, formula or software), the business component to be technological in nature, some kind of elimination…
The Research & Development (R&D) Tax Credit is available for any company that designs, develops or improves products, processes, techniques, inventions, formulations or software. Yet, many companies don’t take advantage of this beneficial tax incentive since they don’t know if their industry qualifies for it. Under recent regulations, more industries…
Companies that build system controls are strong contenders for the Research and Development (R&D) Tax Credit. These companies conduct daily qualifying research activities (QRAs) when they design, develop or improve their system controls. Additionally, they invest in extensive amounts of qualifying research expenses (QREs), such as the salaries of employees…
Businesses sometimes fail to claim the Research & Development (R&D) Tax Credit due to confusion as to what activities and expenses qualify. These companies aren’t aware that their daily activities meet the four requirements that fulfill the IRS Four-Part test. Such is the case with the food manufacturing industry. Companies…
The Research & Development Tax Credit is a strategic financial planning tool that allows companies to reduce its liabilities, permitting them to reinvest in their R&D efforts. This tax incentive allows companies to achieve their full potential and succeed in the extremely competitive high-tech market. Yet, many tool and die…
Architecture and construction firms continue to under utilize the Research and Development Tax Credit due to a misconception of qualification and a fear of triggering an IRS audit. The good news is that these industries conduct qualified research activities on a daily basis and stand to take significant advantage of…