RESEARCH & DEVELOPMENT

What is Research & Development?

It is a tax credit allowed, by law, for companies that have invested time, money and resources towards the advancement and improvement of products & processes.
 

What is the benefit for my company?
You may have a hidden tax credit available to you through a reduction of current or future federal and state tax liabilities. In fact, many activities that you do daily may qualify for this credit. You may claim a credit for all open tax years which is usually the last 3-4 years and the current year. Furthermore, you may carry this credit forward 20 years!

How do I know if my company qualifies?
If you have made an effort to make your products or services better through means of "lighter, stronger, cheaper, more reliable, economical or more versatile", you may qualify.

• Below is a list of the types of activities that may provide guidance as to whether or not you qualify:
• Manufacture of products;
• Development of new, improved or more reliable products/processes/formulas;
• Development of prototypes or models (including computer generated models);
• Design of tools, jigs, molds and dies;
• Development or application for patents;
• Certification testing;

• Testing of new concepts and technology;
• Development of new technology;
• Attempted use of new materials;
• Acquiring new equipment;
• Environmental testing;
• Development or improvement of production/manufacturing processes;
• Development, implementation or upgrading of systems and/or software;
• Development of production control software;
• Improvement or building of new manufacturing facilities;
• Automation/streamlining of internal processes; and
• Expending resources on outside consultants/contractors to do any of the above stated activities.  

Contact Allan Peiser, Managing Partner, at 214-635-2503.