Research Tax Credit
Whether or not your business has a separate research and development department, chances are that your company regularly engages in research activities such as improving efficiencies, enhancing product lines, and introducing new goods. In today’s environment, these activities are essential to stay competitive.
What is a Research Tax Credit?
A substantial opportunity exists to offset the costs of these research activities - research tax credits. The federal research credit is a 20 percent credit, and many states provide additional research credit incentives as well.
Companies in a variety of industries, including manufacturing and technology, can benefit from the credit. If your company possesses one or more of the following characteristics, you may profit from a Research Tax Credit Study.
• Use technological processes to make tangible products and make improvements
to the product.
• Develop new or improved software applications for internal or external purposes.
• Develop new or improved processes for producing goods.
Identify Qualifying Activities
The Reinsel Kuntz Lesher LLP Research Tax Credit Study is a technical assessment of your activities. Our experienced tax professionals identify expenditures that qualify for the research tax credit included under both federal and state codes. Activities for open tax years, typically the past three years, are analyzed to determine eligibility. When necessary, we amend any tax returns that qualify for the credit.
Educate Your Personnel
As part of your Research Tax Credit Study, we will take the time to educate your employees on this beneficial credit. Going forward, you will know what is considered a qualified research expenditure.
We will work with you to develop internal procedures that properly track these expenses. Documentation to substantiate eligibility for research expenditures and credits, in case of IRS or state examination, will be at your fingertips.
Running a successful business requires innovation. With the help of our tax professionals, you might find ways to increase your cash flow and leverage costs you are already incurring.
