Intrepid Advisors often receives questions related to the R&D tax credit and how it can benefit startups and small companies in particular. The Protecting Americans from Tax Hikes Act of 2015 (The PATH Act) created an opportunity for qualified small businesses to offset all or a portion of their contribution to payroll tax using federal R&D tax credits for up to five years. Business owners and executives interested in saving valuable…
The largest and most complex tax cut in U.S. history, the Tax Cuts and Jobs Act (TCJA), has left American business owners wondering how the changes to the tax code will affect them and their businesses. In the coming months, business executives and their tax preparers will be scurrying to reformulate their tax strategies and business plans ahead of year’s end. Perhaps the best news for owners of manufacturing and…
It’s tax time! Is your company and your CPA firm working vigorously to gather the financial data for 2017? Are you taking full advantage of the Research and Development (R&D) Tax Credit? The R&D tax credit can provide huge tax savings regarding the expenses incurred for qualifying activities. So, what exactly are qualifying research activities? Qualifying Research Activities Qualifying Research Activities (QRAs) are efforts undertaken to develop new products, fabrication…
The Tax Cuts and Jobs Act that was recently passed by Congress raised a lot of concerns and questions about the future of the R&D tax credit. Fortunately, our lawmakers worked out their differences and the research tax incentive survived to continue as a vital part of the tax code. Hopefully, all the press about the tax law has peaked your curiosity about the research credit, and as a result…
During the holiday season, many of us end up at a holiday party or two, celebrating with friends, family, and colleagues. It so happens, I was at a holiday gathering recently where a business colleague and I were sampling sweets while discussing corporate taxes when she asked, “Do cookie makers qualify for R&D tax credits?” The short answer is, “absolutely.” Food manufacturers, like other types of manufacturing companies, work hard…
By: Kathy Doherty – Director of Operations It may come as a surprise to some industry professionals that many construction and engineering firms invest significant amounts of money in research and development, yet never claim tax credits for it. The fact of the matter is that there are substantial tax incentives available in much of the typical work conducted by construction and engineering companies. Many companies in the engineering and…
By: Steve Powers – President of Intrepid Advisors Since federal research and development tax credits were first introduced into law back in 1981, they have been recognized as a key factor in driving US innovation across a wide range of industries. As Congress begins to take up the challenge of tax reform in late 2017, I’m regularly quizzed about the future of the R&D tax credit. At the heart of…
By: Steve Powers – President of Intrepid Advisors I’m introduced to owners and managers of manufacturing and technology-based companies virtually every day, and even after 25+ years in the business, I still find it interesting that many business leaders are unaware or unfamiliar with the research tax credit and the financial benefits it can provide their companies. In particular, federal and state R&D tax credits allow companies conducting qualified research…
When business owners, chief financial officers, and corporate accountants consider R&D tax credits, they often conclude that only high-technology companies, innovative scientific start-ups, and other leading-edge enterprises qualify for the credit. What probably doesn’t come to mind are companies involved in the manufacturing of precast concrete components. But the truth is, while medical device, biopharmaceutical, and microelectronics companies have been taking advantage of R&D tax credits for decades, other industries…
Presently, U.S. manufacturers and technology companies in the know are leveraging R&D tax credits to the tune of $15 billion a year, yet evidence shows that most eligible businesses are leaving substantial tax dollars on the table that otherwise could be reinvested in their businesses. So why are so few companies claiming R&D tax credits? The main reason is that most disqualify themselves erroneously because they believe their companies are…
It’s common knowledge that Life Science companies spend millions of dollars on research activities but did you know that many of these companies don’t take the R&D tax credit? Why is that? Because, while these innovative companies have large operating expenses they have little, if any, revenue creating net operating loss (NOL) deductions. The federal code allows up to 20 years of NOL carryforwards on future tax returns. Unused R&D…
Intrepid Advisors to present at the Marine Machinery Association 33rd Annual Spring Meeting event, February 15, 2017 Steve Powers, President, and Al Lenac, Director of Mid-Atlantic Region, will explain the value of the R&D tax credits and how Intrepid Advisors’ experts can help the marine manufacturing industry receive these tax incentives to reinvest back into their companies. MMA serves the interests of the American companies that supply products, systems and…
When can you recall new tax laws being good news for manufacturing? U.S. manufacturers and technology companies are only beginning to realize that federal income tax provisions contained in the recently enacted Protecting Americans from Tax Hikes Act of 2015 (PATH Act) are certainly worth being excited about. The PATH Act, which was signed into law in December 2015, made the R&D tax credit a permanent piece of the federal…
Without question, one of the major highlights of the recently enacted PATH Act of 2015 is the provision making the R&D Tax Credit permanent. The permanency of the credit provides the owners and leaders of manufacturing and technology companies the fiscal certainty necessary to make important decisions concerning their investments in innovation without heed of Congress’ political whims. The research tax credit, which had been a temporary tax measure until…
Tax professionals preparing 2015 returns for Massachusetts-based manufacturing and technology companies should beware of a considerable error contained in the state’s online instructions for claiming the R&D tax credit that, if not recognized, could cost their innovation clients substantial dollars in the form of tax overpayments. In August of 2014, the Massachusetts legislature enacted An Act Promoting Economic Growth in the Commonwealth that included business-favorable provisions altering the method for…
In August of 2014, the Massachusetts legislature enthusiastically approved An Act Promoting Economic Growth in the Commonwealth, which was quickly signed into law by former Governor Duval Patrick. While there is optimism among the government faithful that the bill’s $85-million economic stimulus package will spur vitality to the Commonwealth’s economy, the state’s manufacturers and technology companies are left wondering how the new R&D tax credit regulations prescribed in the legislation…
The U.S. Senate approved a sweeping fiscal legislation package on December 18 that not only averts a government shutdown, but makes the research and development tax credit permanent. The Senate passed the bill by a vote of 65-33, shortly after the House approved the legislation by a similar margin of 316-113 House. The legislation, entitled,Protecting Americans from Tax Hikes Act of 2015, will finance the government through September 2016. The bill…
On July 21, the Senate Finance Committee approved a two-year extension of the Research Tax Credit. In a roll-call vote, the Committee endorsed an extension of the research credit and several dozen other business tax credits and deductions through the end of 2016 by a margin of 23-3. The bill put forth by the Finance Committee last week is seen by Senate leaders as being especially important to small manufacturing…
On Friday, the White House indicated that President Obama signed the tax extender package contained in HR 5771, the Tax Increase Prevention Act of 2014. The bill, which was overwhelmingly approved in the House of Representatives and the Senate earlier this month, includes a one-year extension of the research tax credit retroactive to January 1, 2014. As I’ve mentioned during recent weeks, it looked as though the R&D tax credit…
On June 3, the IRS surprised taxpayers when it announced a significant change to the research tax credit regulations relating to the election of the alternative simplified credit (ASC). The rule change, which is effective immediately, allows taxpayers to make an ASC election on an amended return for a previously filed tax year. In June of 2011, the Treasury Department and the IRS published final regulations relating to the election…
Last week, on April 3, Senate Finance Committee Chairman Ron Wyden (D-OR) and the Finance Committee passed a bipartisan bill renewing the popular research tax credit as well as 50 other tax provisions known as the “tax extenders”. The bill entitled the Expiring Provisions Improvement Reform and Efficiency (EXPIRE) Act was approved by a near unanimous bipartisan vote. If approved by Congress, the research credit would be extended through December…
The federal Credit for Increasing Research Activities, one of the most valuable tax breaks for U.S. manufacturing and technology companies, expired on December 31. The expiration marks the ninth time the R&D tax credit has elapsed. So, should American businesses be concerned the credit will not be available for 2014 and the coming years? No doubt, the expiration of the credit creates a measure of uncertainty for companies considering plans…
A frequently asked question these days is, “do architectural and engineering/construction firms qualify for the R&D tax credit?” The answer, unfortunately, is not simple. While research tax credits can be a lucrative incentive for any firm, a unique set of facts and circumstances is required for an A&E firm to qualify. For an activity to qualify, it must meet four criteria: The project must discover information relating to a new…
The American Taxpayer Relief Act of 2012 extended the Credit for Increasing Research Activities (“The R&D Tax Credit”) from Jan. 1, 2012 through the end of 2013. The extension marks the 16th time the credit has been extended since its origination in 1981. In addition to extending the popular credit, the legislation also clarifies the rules relating to the use of the credit by companies that convey ownership of their…
For more information contact: Stephen J. Powers, President Intrepid Advisors LLC Phone: 508-926-2236 spowers@intrepid-advisors.com FOR IMMEDIATE RELEASE: Intrepid Advisors LLC Relocates Corporate Headquarters to Marlborough, MA MARLBOROUGH, MA – January 20, 2012 – Intrepid Advisors LLC, a leader in providing specialized research and development tax credit services, announces they have relocated their corporate headquarters to a larger office facility in Marlborough, MA. The new state of the art facility…