R&D Tax Credit FAQs

Is this something new?

 

• No. R&D tax law has been in place since the early 1980's.

• Rule changes and court cases have made it easier for more businesses to participate in these credits and for more activities to qualify.

• Only about ⅓ of eligible companies with R&D activities are claiming the credit.

 

 

I'm already taking R&D deductions

 

• 'Credits' for qualified activities are available in addition to deductions.

• The credit is a dollar-for-dollar offset against your taxes.

 

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I don't have any R&D

 

• If you develop new products, design manufacturing processes or tooling, pursue process improvements or develop custom software you have qualified activities and may have overpaid taxes.

• Your competitors are claiming the credit – does this put you at a competitive disadvantage?

• When was the last time you had a technical assessment performed by a qualified R&D expert confirming your belief?

 

 

What is the benefit?

 

• Cash Flow - credits are cash and can be significant.

• Reduce tax liabilities for current and future years.

• Recover significant overpayment of taxes in prior three years and reduce taxes and estimated payments in current and future years.

• Use of credits can be a means to enhance M&A transactions and earnings per share calculations.

 

 

I already have a tax advisor.

 

• Our field technicians spend 2000 hours annually consulting on R&D tax matters, while the average tax generalist spends less than 40.

• The vast majority of advisors have very limited knowledge of R&D tax credit law.

• Has your advisor discussed the impact of the 2001, 2004, 2007, 2010 & 2014 regulatory changes on R&D credits for your business; what about how 2009, 2010, 2012 & 2014 court cases that may affect your credit potential?

• We team operational, engineering, accounting and tax experts to enhance and preserve your rights to these credits.

• There is a direct correlation between the amount of your defensible credit and the expertise of the advisor performing the tax credit study.

 

 

What does the study cost in money and time?

 

• We perform a no-risk assessment first. There is no charge if an r&d credit benefit does not exist for you.

• Your team's cumulative time commitment is typically <12 hours for the assessment and <30 hours for the completed study.

 

 

It seems too good to be true.

 

• These credits have been available since the 1980's.

• Recent changes have made these credits more accessible to middle market companies.

• The law isn't new, knowledge of it and awareness of its application to your business has increased.