Research & Development Tax Credit (R&D)
If your company is involved with developing new products, processes or prototypes, and
improving on an existing product then your company qualifies for the R&D tax credit. This tax
credit is one of the most valuable credits a company can claim; saving your firm hundreds of
thousands of dollars annually.
Previously, only companies engaged in operations such as pharmaceuticals or software
development could claim the R&D tax credit. Due to the strict requirements of the credits in the past, companies have been led to take their research activities overseas. Recent legislation, a revised method of computing the credits, and the desire of the IRS to increase the domestic R&D activity has made it easier for companies to claim these credits.
Does your company fit into any of the industries listed below?
Your organization can be eligible for R&D tax credits if it engages in any of the
following activities.
- Food Processing
- Apparel and Textiles
- Construction and Engineering
- Chemical or Plastics
- Manufacturing
- Architectural
- Distribution
- Agriculture
- Dairy Farming
- Electrical Contracting
- Foundries
- Poultry
- Software
- Wine Making
- Brewing
- Aerospace
- Job Shops
- Oil and Gas
- Engineering Services
- Life Sciences
Phase I. Assessment and Feasibility
An assessment focusing on: qualified research activities, department interviews, key personnel involved with research activities, research conducted by third parties and documents gathered for information and formulation of potential R&D tax credit amounts.
Phase II. Documentation
Detailed analysis of all qualified research activities, tying people to projects and time spent on those projects. Data collection of eligible expenses and supplies, identifying and documenting all qualified research expenditures.
Phase III. Reporting
Calculation of all available R&D tax credits includes supportive documentation building, a study report designed to withstand Federal and State audit of the credits, and supplying all available credits to your CPA or accounting firm for inclusion on tax returns.
Result: Claiming the tax credit for your business
Let the professionals at Kuhler capture, design and support these significant R&D tax savings for your company on both the federal and state level. All credits developed are a dollar for dollar offset against tax liability and can be carried forward for 20 years. Smart businesses are taking advantage of these valuable tax credits.
