R&D Tax Credits: Compensation for Innovation

R&D Tax Savers has saved clients millions through Research and Development Tax Credits.

R&D Tax Credits: Compensation for Innovation

R&D Tax Savers has saved clients millions through Research and Development Tax Credits.

R&D Tax Credit Announcements from R&D Tax Savers:

December 2016

News
New Start-up R&D Tax Credit Workshop

February 2016

News
Growing Your Business from the Ground Up - Entrepreneur Series - April 5th

November 2017 RDTS Publishing publishes one of our latest R&D articles Los Creditos Fiscales para I&D y las Start-Ups de Miami.
October 2016 RDTS Publishing publishes one of our latest R&D articles The R&D Tax Credit Aspects of Miami Start-Ups.
October 2016 RDTS Publishing publishes one of our latest R&D articles Machine Shop Innovation and R&D Tax Credits.

R&D Tax Credit - Benefits


      The Research and Development Tax Credit (IRC Section 41) is one of the most substantial incentives under current U.S. tax law because, unlike a standard deduction, it is a dollar-for-dollar credit against your tax liability. Depending on your company's qualified research expenses, the credit can include eligible wages, supplies, and outside contractor expenses. This federal tax incentive is available in over 30 states. In addition, the R&D Tax Credit is available for all open tax returns, which usually includes up to 3 previous years and the current tax year. In the case of insufficient lax liability, firms may have the option to carry the credit forward 20 years.

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Qualifications

R&D Tax Credit - Qualifications

      The common misconception about the R&D Tax Credit is that it is solely for traditional, white lab-coat activities and manufacturers. Recent legislation has broadened the industries and companies that qualify for the credit. Common R&D eligible activities include:

  • Pre-production design and engineering of a new product or improved existing product, process, or production improvement
  • Prototyping and patent applications
  • Experimenting or testing new concepts, formulations, materials, tools, and procedures
  • Software development for internal use or sale
  • General trial and error experimentation

R&D Tax Credit - Industries

      Despite the tremendous tax opportunity, most eligible companies (more than 65%) are unaware or fail to take full advantage of the generous R&D Tax Credit. Companies, large and small, in a broad range of industries, often overlook research expenses in their field, due to misconceptions about common activities that qualify. Our experts understand that the Research Tax Credit is not limited to traditional white lab-coat activities or manufacturing, and can use our streamlined process to extract the full potential of your company's R&D opportunities. If your company is involved in any type of research, development, or improvement of new or existing products, processes, formulations, or software your company likely qualifies. R&D Tax Savers can help you quantify and defend your R&D Tax Credit.

Industries
Process

R&D Tax Credit - Process

      R&D Tax Savers specialists include attorneys, CPAs, engineers, and IRS enrolled agents that provide unparalleled expertise in order to substantiate the maximum tax credit for your company and ensure its defense. We perform complimentary assessments of your innovative activities to demonstrate the potential credits, present and past. Our streamlined, turn-key process explores the fundamental R&D activities of your business on a project by project basis, which will optimize your savings with minimal time investment from your employees. Our focus on the quantitative and qualitative aspects of your R&D will improve your company's internal procedures, resulting in simpler, stronger R&D claims.

R&D Tax Credit - Case Studies


      Our goal at R&D Tax Savers is to pursue the tremendous tax incentives for any company that invests in the development of new or improved products, processes, and services. Our experts have captured millions of dollars of tax savings in various industries, from biotech startups and medical manufactures, architecture and engineering firms, to nutritional product and food producers. Our streamlined turn-key process not only maximizes your financial benefits now, but also encourages procedures to promote simpler, and stronger tax credit claims for the future.

Case Studies
Legislation

R&D Tax Credit - Legislation


      Since its adoption in 1981, the R&D Tax Credit has been a significant tool to promote domestic innovation and maximize the bottom line of companies across a wide spectrum of industries. Over the past 30 years, the credit has evolved constantly through legislation and treasury regulations which have developed into 3 pronounced phases, Adoption, Redefinition, and Examination. Our expertise and understanding of the history of the Research Tax Credit allow us a better approach and refined process in order to capture the maximum savings and required documentation for your company.

R&D Tax Credit - Case Law


      R&D Tax Savers stays up to date on the issues and resolutions in R&D case law. In extreme situations, audit appeals can result in cases filed with the U.S. Tax Court. Through this process, the court further interprets and clarifies the rules and regulations regarding the R&D Tax Credit. Specific rulings can effectively change how the tax credit is handled by companies and the IRS. By understanding the details and requirements that the IRS emphasizes, we can create simpler, yet stronger claims and maximize your savings.

US Tax Court