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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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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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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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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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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Does Your Architecture & Engineering (A&E) Firm Qualify for the R&D Tax Credit?

Written by Mark Echols. Updated Jun 25, 2018.

The architecture and engineering (“A&E”) industry is the lifeblood of innovative design and construction projects in today’s competitive global environment. A&E firms develop a nation-wide infrastructure and these new projects may qualify for valuable federal and state R&D tax credits.  According to the latest U.S. Census Bureau, there are more than 80,000 A&E companies in the U.S. and a clear majority of these firms are not even aware that they are doing research and experimentation activities eligible for the credit.

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Arizona's Enhanced R&D Program May Bring You More Savings

Written by Mark Echols. Updated Jun 18, 2018.

The Research and Development (R&D) incentive provides an Arizona income tax credit for increased research and development activities conducted in the state, including research conducted at a state university and funded by the company. The goal is to encourage businesses to continue investing in research and development activities in the state of Arizona.

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Learn How Current Activities Can Earn Tax Credits For Your Construction Firm

Written by Mark Echols. Updated Jun 6, 2018.

Construction companies may be able to take advantage of the credit for increasing research activities (“R&D tax credits”) under Internal Revenue Code §41, if they know what activities and expenses are eligible for the credit.  The two key questions taxpayers should be asking themselves are 1) what activities at my company are eligible for the R&D credit and 2) are the R&D expenditures related to those activities properly identified and captured. 

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Learn How To Grow Tax Credits Today for Cannabis Businesses in California

Written by Mark Echols. Updated May 7, 2018.

Cannabis businesses involved in research and development activities and related expenses may be eligible for valuable R&D tax credits. Over the past several years, some states including California, have introduced and passed legislation making it legal to grow, manufacture, and use both medicinal and recreational cannabis (also known as marijuana).   Frequently, the cultivation of the cannabis plant and the subsequent development of new and different marijuana products involve much research and experimentation.    These businesses and their tax professionals need to know how the new legislation coupled with the current state R&D tax credit rules can provide significant savings on the taxpayer’s income tax returns.

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