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 payroll tax dollars need to understand the following key points.
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.
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?
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. You may be asking yourself, “How do I choose a qualified R&D tax credit specialist who can assist my business identify activities and expenses that qualify for the credit, and maximize the cash benefit?”
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?”
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.
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 the question is the Republican goal of simplifying the tax code, reducing tax rates, eliminating tax breaks and decreasing the federal deficit.
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.