If your company pays federal taxes, like many you may not know all about the new IRS federal tax credits of 6.5 % for all spending on product development, especially employee salaries. Many companies aren’t aware of these new tax rules and just how much more is covered today, but our tax experts are.
The credit can go back 3 years plus the current year. The credit comes off your federal tax bill.
Any company that designs, develops, or improves products, processes, techniques, formulas, inventions, or software may be eligible. In fact, if a company has simply invested time, money, and resources toward the advancement and improvement of its products and processes, it may qualify.
Example – you spend $200,000 a year on employees who develop products. You qualify and get a $12,500 in credit off your federal tax bill per year, and you can go back three years plus save this year. That is $50,000 saved. Our experts told us the IRS is happy because you’re providing jobs. There may be additional credits for state taxes.
There is no charge to find out if you can save. It is a four minute conversation with our subject matter experts to find out if you qualify. Our tax experts are saving companies $20,000 to $750,000.
We encourage any CFOs, or Controller, or Accountants to reach out to us with an e-mail or call 212-247-2502.
What Qualifies as R+D?
You may wonder if your firm has spending that qualifies. “Qualifying research” runs the gamut from initiating designs, to testing products, to manufacturing process improvements. The great thing about this is that many companies spend money on developing products. Because of the current broad definition, if you’re involved with any of these things you may be eligible for R+D Tax Incentives.
- Designing new products including software or materials
- Designing innovative product features or techniques
- Generating prototypes and samples of new products – for testing and validation
- Developing new or improved treatments for materials
- Developing new or improved manufacturing processes
- Developing and designing scaled up manufacturing processes
R+D Tax Credits are awarded across a wide range of diverse activities, and our expert can determine what credits are available for your company. We think you’ll be surprised how much qualifies.
We will be happy to schedule a 15 minute conversation, either by phone or in person, to determine if you qualify for this and other government sponsored incentive program. We would like to put tax dollars back in your pocket. Please e-mail or call us at 212-247-2502.
Tags: Corporate Taxes, Federal Tax Credits, R+D Tax Credits, Tax Credits