R&D Tax Credit Study Overview
Ascend Revenue’s Research & Development Tax Credits Study is for US manufacturing firms engaged in developing new products and processes, or improving existing ones, through the application of engineering and/or scientific methodology.
A lot of confusion surrounds the Research & Development Tax Credits program as set forth in Section 41 of the Internal Revenue Code. Contrary to what many believe, these lucrative tax credits are not available exclusively to software developer and pharmaceutical manufacturers. Every manufacturer engaged in product and process development and improvement should explore R&D Tax Credits.
History of the Program
The Research & Development Tax Credit was originally enacted as a Federal Tax Program in 1981 and was designed to encourage American investment in innovation. In 2004, tax regulation changes significantly expanded the credit opportunity. Today, the credit is accessible to many small and medium sized companies whose activities include design, manufacturing and process improvements..
What Companies Qualify for R&D Credits?
Who and what qualifies as research and development (R&D) is much broader than most realize. Activities and costs related with developing or improving a product and/or process often qualify for R&D tax credits. Furthermore, engineering, design, testing, and programming are now included as Qualified Research Activities (QRE). Industries that most commonly qualify are:
What are the Benefits of a R&D Tax Credit Study?
The benefits of having an R&D Tax Credit Study performed would be:
Dollar for dollar credit against taxes owed or previously paid
Carry forward credit for future profitable years
Immediate increase in company cash flow
Credit average is over $25,000 per $1,000,000 in total company payroll
Ascend Revenue utilizes a team of highly qualified professionals including IP attorneys with engineering backgrounds and adheres to the Comprehensive Project by Project Approach methodology as required by the IRS. By following this methodology, we qualify every applicable employee, activity, hour spent and corresponding wage paid in order to maximize the incentive for our client. We strictly adhere to the applicable sections of the code and provide first-in-class documentation to substantiate our findings.
An initial consultation is done over the phone with one of our R&D Specialists to identify potential Qualified Research Expenditures (QRE). If qualifications are identified, GMG will collect an authorization to begin working on the client’s behalf. No fee is charged until credits are identified and utilization is verified with the client’s accounting representation.
The initial consultation is simple, quick and free of charge. To schedule your no-cost consultation, please contact us.