Tax Incentives Blog

Taz Singh

Taz Singh
Taz has 20 years of experience in tax and business incentives. Prior to establishing CTI, Taz served as a corporate tax auditor for the California Franchise Tax Board. During his tenure, Taz specialized in auditing tax credits, including manufacturers’ investment credits, research & development credits and credit limitations (IRC 382 Limitation) due to ownership changes.
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Recent Posts

Want the Truth About Cost Segregation?

Written by Taz Singh. Updated Jun 25, 2019.

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…

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5 Bountiful Ways to Reap R&D Tax Credits for Your Software Startup

Written by Taz Singh. Updated Apr 16, 2019.

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.

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R&D Tax Credits For Internal-Use Software: High-Level Executive Wages

Written by Taz Singh. Updated Jul 14, 2016.

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.

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4 Concrete Ways The Video Game Industry Qualifies For R&D Tax Credits

Written by Taz Singh. Updated Jun 9, 2016.
The R&D tax credit and the video game industry complement each other, but companies need to know what activities are potentially qualified for them to take full advantage of these benefits and opportunities. Below are some of the more significant R&D activities that video game companies conduct that will qualify for both federal and state R&D tax credits
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CTI Client Success Story: Pharmaceutical R&D Tax Credits

Written by Taz Singh. Updated May 12, 2016.
A California-based middle market, specialty pharmaceutical R&D company engaged in the development, manufacturing and commercialization of generic and proprietary injectable and inhalation drug products.

This private company has grown rapidly over the past several years with annual revenues of approximately $125 million.

The company has four main research facilities (three in the U.S. and one in India). The primary goals of the company were to expand and strengthen its research and development expertise in the injectable and inhalation markets. An emphasis was placed on developing products for large patient populations with high technical barriers to enter the marketplace.

Much of its pharmaceutical R&D focus is on developing technical expertise to:
  • Create products requiring an active pharmaceutical ingredient that is challenging and difficult to manufacture
  • Design a new and complex drug manufacturing process
  • Improve new drug formulations to provide better drug performance
  • Establish new proprietary drug delivery systems and technology

The Company’s Potential To Capture R&D Tax Credits

Since most of this company’s R&D activities are conducted in the U.S. and California, it’s eligible for both the federal and California R&D tax credits.

The company employs over 150 scientists and other technical personnel dedicated to research and development activities, with expertise in the following areas:

  • Pharmaceutical formulation
  • Process development
  • Toxicity studies
  • Analytical and physical chemistry
  • Drug delivery systems
  • Device development
  • Clinical research studies 

With all of these activities, the company incurs tens of millions of dollars a year in pharmaceutical R&D expenses, including employee wages, supply expenses and contract research payments.

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The Orphan Drug Credit: Considerations For Computing Qualifying Wages

Written by Taz Singh. Updated May 5, 2016.
As more and more pharmaceutical companies invest in new and improved drug development activities, certain drug indications dictate whether or not the medicine will be viable for a small or large segment of the population.

To encourage pharmaceutical companies to invest in drug discovery and development that will only be useful for a small population of patients, the U.S. government enacted the Orphan Drug Act to help companies combat unique medical conditions. Since most pharmaceutical companies attempt to develop larger and more widely available drugs, this tax credit incentivizes the investigation of drugs with fewer commercial applications.
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Innovative Medicine: IRS Guidelines To Maximize Your R&D Tax Credits

Written by Taz Singh. Updated Apr 21, 2016.

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. 

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Maximize R&D Tax Credits With Pharma Executive Wages

Written by Taz Singh. Updated Apr 7, 2016.

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. 

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Everything You Need To Know About New R&D Tax Credit Legislation

Written by Taz Singh. Updated Feb 11, 2016.

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:

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Case Study: The Successful Results of A Complete Fixed Asset Review

Written by Taz Singh. Updated Feb 5, 2016.

**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.

The Problem

Historically, the company had not been in a taxable position. As a result, they typically categorized all new construction, renovation and acquisition fixed asset costs using the straight-line depreciation (39-year) method.

This year, however, the company faces a significant tax liability and is pursuing opportunities for accelerated depreciation deductions.

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