Half-truths, misconceptions, and myths fly about our world like a colony of “blind” bats awakened for the night: Napoleon was short, don’t wake a sleepwalker, you can see the Great Wall of China from space, the ‘five-second rule,’ duck quacks don’t echo, bulls hate red…
When I hear or see the term “start-up,” for some reason my mind’s eye conjures images of fragile, slender vegetable plants that have just recently tunneled their way up through the dirt and into the light. They’re teetering just inches above the soil, still closer to their origin than their destination. At this stage, they require attentive care to afford them every advantage to grow and prosper.
One of the key expenditures incurred during software development activities is employee wages.
What you may not already know is that, under Internal Revenue Code (IRC) Section 41, some wages are considered qualified research expenses, especially if the employee’s activities are for direct research, direct supervision or direct support of those performing research.
Drug discovery and development in the pharmaceutical industry is a complicated and complex process involving significant time, energy and resources with individuals developing new or improved medical products and drugs involving new research, the discovery of new development processes, preclinical and clinical testing, and high-tech drug manufacturing processes. Using R&D tax credits is one way companies can continue investing in innovative medicine.
One of the most lucrative incentives for companies that invest in research and experimentation activities is the federal and state R&D tax credit. Although the credit has been available since 1981, many companies in the pharmaceutical industry have failed to fully account for, identify and claim credits for research expenditures.
A key component of the R&D tax credit is determining which activities and expenses are eligible.
Congress has permanently extended the research and development (R&D) tax credit, retroactively as of January 1, 2015. This extension is part of the PATH Act of 2015.
Adding to the research credit’s much-anticipated permanence, the legislation also features important changes expanding how the R&D tax credit benefits are currently used, especially by small businesses.
The following are key enhancements as a result of the new R&D legislation changes:
**This case study is an amalgamation of CTI client success stories – based on real-life outcomes – to showcase a balanced, conservative perspective in the interest of not inflating numbers or empty promises.**
Company XYZ, Inc. is a food manufacturing company with four facilities spread throughout California, including its headquarters facility, which is located in Sacramento.
