The R&D credit may be a significant source of cash and permanent financial statement benefit for your organization.

 

Although the research credit has been continuously in existence since 1981 many companies may not be aware that recent legislation extended the R&D credit and significantly enhanced and simplified the credit so that it has broader applicability to many companies.

 

Any company involved in developing new or improved products, processes, or software is potentially eligible. If your company has been engaged in these types of activities for the last several years, you may be eligible to retroactively claim the R&D Tax Credit for federal and state income tax purposes, obtain significant cash refunds, and establish a methodology to continue claiming these credits in future years.

 

Activities That May Qualify

  + Developing new, improved or more reliable products,
processes, formulas, technique or invention
  + Developing or improving production or manufacturing processes
  + Developing prototypes or models
  + Technical feasibility analysis
  + Reliability testing
  + Performing certification or environmental testing
  + Use of U.S. based third party contractors
performing qualifying activities
  + Software development activities
  + Membership in trade organizations that perform
qualifying research on behalf of their members
  + Individuals may qualify if they are directly performing the above activities, directly supporting or directly supervising such activities
     

Benefits to Your Organization

  + Increased cash flows
  + Permanent tax savings
  + Possible financial statement benefit by
reducing your effective tax rate
  + Unused R&D credits carry-forward for 20 years
     

Industries Served

  + Software
  + Medical Products
  + High-Tech and Electronics
  + Forest Product and Chemical
  + Apparel
  + Manufacturing
  + And many more

 
© Kieckhafer Schiffer & Company LLP, All Rights Reserved.