Tax Credit Advisors BulbWith​ ​all​ ​the​ ​news​ ​developing​ ​in​ ​Washington​ ​about​ ​the​ ​proposed​ ​tax​ ​overhaul,​ ​it’s​ ​important​ ​to remember​ ​that​ ​the​ ​existing​ ​tax​ ​rules​ ​are​ ​fully​ ​in​ ​place​ ​for​ ​the​ ​2017​ ​filing​ ​year.​ ​That​ ​means​ ​that when​ ​you’re​ ​filing​ ​your​ ​taxes​ ​next​ ​year,​ ​it​ ​is​ ​important​ ​to​ ​consider​ ​the​ ​federal​ ​Research​ ​Credit and​ ​the​ ​various​ ​state​ ​credits​ ​that​ ​might​ ​also​ ​apply.

The​ ​federal​ ​research​ ​credit​ ​dates​ ​back​ ​to​ ​1981,​ ​and​ ​you​ ​can​ ​expect​ ​to​ ​receive​ ​tax​ ​credits​ ​for eligible​ ​experimental​ ​development​ ​costs​ ​that​ ​your​ ​business​ ​performed​ ​during​ ​the​ ​2017​ ​filing year​ ​that​ ​are​ ​properly​ ​documented.​ ​This​ ​important​ ​incentive​ ​program​ ​​can​ ​amount​ ​to​​ ​​as much​ ​as​ ​​ten​ ​percent​​ ​of​ ​your​ ​qualified​ ​spending​ ​on​ ​people,​ ​materials,​ ​and​ ​related​ ​investments dedicated​ ​to​ ​figuring​ ​out​ ​how​ ​or​ ​whether​ ​you​ ​can​ ​make​ ​something​ ​new​ ​or​ ​improved​ ​by experimental​ ​means.​ ​This​ ​applies​ ​not​ ​only​ ​to​ ​new​ ​products,​ ​but​ ​also​ ​to​ ​improved​ ​ones,​ ​as​ ​well as​ ​new​ ​and​ ​improved​ ​processes,​ ​software​ ​and​ ​equipment.​ ​Also,​ ​because​ ​this​ ​is​ ​a​ ​tax​ ​credit​ ​and not​ ​merely​ ​a​ ​deduction,​ ​the​ ​credit​ ​value​ ​results​ ​in​ ​a​ ​​dollar​ ​for​ ​dollar​​ ​reduction​ ​in​ ​your​ ​tax​ ​bill!

In​ ​addition​ ​to​ ​the​ ​federal​ ​credit,​ ​numerous​ ​state​ ​credits​ ​are​ ​also​ ​in​ ​place.​ ​No​ ​matter​ ​where​ ​in​ ​the US​ ​you​ ​are​ ​located,​ ​we​ ​would​ ​be​ ​happy​ ​to​ ​help​ ​you​ ​figure​ ​out​ ​whether​ ​you​ ​qualify​ ​for​ ​these programs,​ ​and​ ​to​ ​help​ ​you​ ​file​ ​successful​ ​claims​ ​if​ ​you​ ​do.​ ​These​ ​federal​ ​and​ ​state​ ​benefits​ ​are intended​ ​to​ ​encourage​ ​companies​ ​to​ ​keep​ ​engineering,​ ​manufacturing,​ ​and​ ​software​ ​jobs​ ​here in​ ​the​ ​United​ ​States.

Things​ ​to​ ​keep​ ​in​ ​mind​ ​when​ ​considering​ ​research​ ​and​ ​development​ ​tax​ ​credits​ ​here​ ​in​ ​North America:

Many​ ​industries​ ​benefit​ ​from​ ​Research​ ​and​ ​Development​ ​tax​ ​credits

It’s​ ​important​ ​not​ ​to​ ​discount​ ​your​ ​industry​ ​just​ ​because​ ​it​ s​​eems​ ​​like​ ​you​ ​might​ ​not​ ​qualify.​ ​Any company​ ​that​ ​engages​ ​in​ ​experimental​ ​development​ ​can​ ​be​ ​eligible.​ ​The​ ​important​ ​thing​ ​is​ ​that the​ ​experimentation​ ​must​ ​be​ ​intended​ ​to​ ​develop​ ​or​ ​improve​ ​an​ ​existing​ ​product​ ​or​ ​process.​ ​For example,​ ​even​ ​a​ ​manufacturer​ ​of​ ​wire​ ​coat​ ​hangers​ ​can​ ​qualify​ ​so​ ​long​ ​as​ ​the​ ​aim​ ​of​ ​the experimental​ ​effort​ ​is​ ​to​ ​develop​ ​a​ ​new​ ​or​ ​improved​ ​technical​ ​capability.​ ​Such​ ​a​ ​company​ ​might try​ ​to​ ​reduce​ ​scrap​ ​rates,​ ​or​ ​improve​ ​cycle​ ​times,​ ​or​ ​reduce​ ​part​ ​weight,​ ​or​ ​engage​ ​in​ ​any​ ​of​ ​a number​ ​of​ ​other​ ​activities,​ ​all​ ​of​ ​which​ ​can​ ​be​ ​eligible​ ​for​ ​tax​ ​credit​ ​support.

Your​ ​company​ ​does​ ​not​ ​have​ ​to​ ​be​ ​of​ ​a​ ​certain​ ​size​ ​to​ ​be​ ​eligible​ ​to​ ​claim​ ​research​ ​and development​ ​tax​ ​credits

Big​ ​or​ ​small​ ​businesses​ ​can​ ​claim​ ​tax​ ​credits,​ ​as​ ​long​ ​as​ ​the​ ​processes​ ​they​ ​are​ ​developing​ ​and testing​ ​meet​ ​the​ ​eligibility​ ​criteria.​ ​Millions​ ​of​ ​tax​ ​credit​ ​dollars​ ​are​ ​left​ ​on​ ​the​ ​table​ ​every​ ​year because​ ​many​ ​companies​ ​think​ ​they​ ​are​ ​too​ ​small​ ​to​ ​claim​ ​these​ ​credits.​ ​Large​ ​conglomerate corporations​ ​aren’t​ ​the​ ​only​ ​ones​ ​that​ ​can​ ​perform​ ​research​ ​and​ ​receive​ ​funding.​ ​It’s​ ​important to​ ​know​ ​that​ ​even​ ​your​ ​small​ ​business​ ​can​ ​compete​ ​and​ ​claim​ ​research​ ​and​ ​development​ ​tax credits​ ​as​ ​well.​ ​Most​ ​US​ ​taxpayers​ ​who​ ​engage​ ​in​ ​experimental​ ​development​ ​can​ ​qualify regardless​ ​of​ ​company​ ​size.

Canadian​ ​companies​ ​can​ ​also​ ​benefit​ ​from​ ​tax​ ​credits

We​ ​also​ ​offer​ ​our​ ​services​ ​in​ ​Canada,​ ​where​ ​the​ ​federal​ ​Scientific​ ​Research​ ​and​ ​Experimental Development​ ​(SR&ED)​ ​credit​ ​serves​ ​a​ ​similar​ ​purpose.​ ​A​ ​number​ ​of​ ​provincial​ ​credits​ ​are​ ​also available​ ​and​ ​we​ ​would​ ​be​ ​happy​ ​to​ ​help​ ​you​ ​navigate​ ​the​ ​rules​ ​and​ ​requirements.​ ​This​ ​is​ ​all about​ ​keeping​ ​jobs​ ​here​ ​in​ ​North​ ​America!

As​ ​always,​ ​Tax​ ​Credit​ ​Advisors​ ​is​ ​here​ ​to​ ​help.​ ​If​ ​you​ ​want​ ​to​ ​find​ ​out​ ​if​ ​your​ ​company​ ​is​ ​eligible for​ ​research​ ​and​ ​development​ ​tax​ ​credits,​ ​we​ ​can​ ​assist​ ​you.​ ​Contact​ ​us​ ​today​ ​to​ ​get​ ​started.

Don't leave money lying on the table!

Don't believe the myths - no business is too small to claim their portion of research and development tax credits. We can help you see if money is owed to you at no obligation to you. Schedule your complementary consultation today.

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