Tax Incentives Blog

You Don’t Need a Time Machine to Claim R&D Credits

Written by Mark Echols. Updated Nov 27, 2018.

The Federal Credit for Increasing Research Activities (“R&D”) tax credit has been available to companies since 1981, but the complex computational rules surrounding the credit have traditionally been a hurdle for companies to claim the benefit.

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Employment Incentives: The Gravy To Your Turkey This Season

Written by Stephanie Cornejo Banuelos. Updated Nov 13, 2018.

Thanksgiving will soon be here, a time for family and friends to gather around the dining room table and show appreciation for each other while celebrating with a bountiful turkey dinner and all the trimmings. And with this tradition, there is a phrase that many will hear drifting across the table…"Please pass the gravy.” As if the turkey, mashed potatoes, and stuffing aren’t enough for a succulent feast, here comes the gravy, a delicious, mouth-watering reward resulting from hours of toil preparing the feast.

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Making A Move To CTI – R&D Success Story

Written by Mark Echols. Updated Oct 24, 2018.

Client Profile:

Industry: 

Internet Security Software

Previous R&D Provider: 

None (completed internal)

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State Incentive Spotlight: Georgia Investment Tax Credit

Written by Stephanie Cornejo Banuelos. Updated Oct 13, 2018.

The Georgia Investment tax credit is designed to service two specific industries; Manufacturing and Telecommunications.  The intent is to help these industries grow by making it more affordable to expand and improve facilities. Investment tax credits can be used to offset up to 50 percent of a company’s Georgia corporate income tax liability. If the earned credit exceeds that limit, then the unused credit can be carried forward up to 10 years and applied to future years’ tax liability. Taxpayers generally claim one of the three Georgia credits for the same project and/or jobs. The credits available are (1) the Investment Tax Credit, (2) the Job Tax Credit, and (3) the Quality Job Tax Credit.

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Can Agriculture Costs Qualify for the R&D Tax Credit?

Written by Mark Echols. Updated Sep 27, 2018.

According to the U.S. Department of Agriculture, U.S. companies produce over $300 billion of agriculture products annually.  Many of these companies are not aware that their research and experimentation activities and related expenses to develop these new or improved products might be eligible for valuable federal and state research and development (R&D) tax credits. For many U.S. agriculture companies, the R&D tax credit can significantly reduce their income tax liability and increase much needed cash flow into their businesses.  Below is a case study of a taxpayer in the agriculture business who was able to utilize hundreds of thousands of dollars of R&D tax credits by identifying and documenting their R&D activities.

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Making A Move To CTI – WOTC Success Story

Written by Stephanie Cornejo Banuelos. Updated Sep 11, 2018.

Client Profile:

Industry: 

Mobile Auto Repair

Previous WOTC provider: 

National Payroll Company

Number of Annual Hires: 

2,800



Current WOTC Performance:

  • 97% Screening Compliance
  • $34,000 Annual WOTC
  • 12% Qualification Rate
  • $12 Average Credit per Hire
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Are Manufacturing Activities Qualified for the R&D Tax Credit?

Written by Mark Echols. Updated Sep 5, 2018.

Manufacturing companies are a perfect fit for federal and state R&D tax credit.  While over 60% of the companies claiming federal R&D tax credits are in the manufacturing industry, many manufacturers are still unaware that their company’s manufacturing activities are eligible for the credit.  You do not have to be a high-technology or medical research-intensive company to enjoy the financial benefits of these valuable R&D tax credits.  For many U.S. manufacturing companies, the R&D tax credit remains one of the quickest ways to accelerate their growth and bottom line profitability.

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Already Claiming R&D Tax Credits? New Corporate Tax Rates Provide Additional Benefit

Written by Mark Echols. Updated Aug 27, 2018.

Starting in 2018, federal corporate tax rates will be reduced from 35% to 21%. While the new lowered corporate tax rate would suggest that credits against tax, such as the R&D tax credit under Internal Revenue Code (IRC) Section 41, would be less valuable as corporations would likely have lower taxes to offset. While this certainly could be the result for some corporate taxpayers, the R&D tax credit actually increases as a result of these new statutory provisions.

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WOTC Keeps the Home Healthcare Industry Thriving!

Written by Stephanie Cornejo Banuelos. Updated Aug 6, 2018.

The home health care industry is booming and according to the Bureau of Labor Statistics, approximately 1.3 million additional jobs within the home healthcare field will be added through 2020. In fact, they report that those working in home healthcare positions will see a 69 percent growth through 2020.  One reason why the home healthcare industry is seeing such accelerated growth is the increase in demand of home healthcare services and facilities. As millions of people reaching an age where they will need some sort of home healthcare. Thus, increasing the expanse of the industry.

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Software Start-Ups, Listen Up! Maximize Your Tax Benefits Today

Written by Mark Echols. Updated Jul 26, 2018.

The R&D Tax Credit and the software industry complement each other but companies need to know what activities are potentially qualified in order for them to take full advantage of these benefits and opportunities.

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