You Do the Innovation. We’ll Handle the Tax Credits.

As long as there are qualifying activities and expenses here in the US, manufacturing can occur anywhere.

It’s not a refundable credit, which means that if the credit is in excess of the tax liability, you cannot get a refund greater than the amount of the tax that is owed. For example, if your tax credit is $25,000 and your tax liability is only $18,000, then you will receive a credit (refund) of only $18,000. The unused tax credits rollover and can be used in future years (up to 20 years for federal purposes).

Many of our clients were already claiming the credit. However, in many cases, they were not securing the full value of the credit. In most cases, we have been able to identify additional credits through our thorough interview process and industry expertise. With a no-fee assessment, there is no reason not to get a second opinion.

Unlike a tax deduction, an R&D tax credit is a dollar-for-dollar credit; this reduces a taxpayer’s bill by a full dollar for each credit dollar. A six-figure tax credit increases Earnings After Tax by the full amount of the credit. A tax credit that can be used to reduce the taxes to be paid means that much more cash in the company’s bank account.

You may still benefit from the R&D credit even without taxable income. Qualified small businesses (those with less than $5 million in gross receipts for the current year and no gross receipts more than five years ago) can elect to use the credit to offset up to $500,000 of the employer’s share of Social Security and Medicare payroll taxes each year. This makes the credit valuable for pre-revenue or loss-making startups, since it can directly reduce employment tax liabilities and improve cash flow.

Because the credits can be claimed in one year and taken in another year, they can be transferred to new ownership. The credits also legitimize a company’s technology. A lot of small companies claim the credit every year because they are looking to be acquired by a larger corporation, and if they have R&D credits on their books it proves they have technology someone else is likely to value.