Research and development are critical parts of business success, which is why business owners prioritize their budgets to support the necessary industry R&D. This process can better serve its customers by offering products that are cheaper, stronger, and more reliable.
Is your business tapping into the available tax credits for these R&D costs? Many business owners are overlooking these opportunities, which means you might be leaving money on the table.
Cash Benefits of R&D Credits
Both small and mid-size companies can benefit from this immediate source of cash. Leveraging R&D Tax Credits gives you a reduction in current tax liabilities, as well as a reduction in future years for both state and federal taxes.
The R&D tax credit isn’t a deduction. Instead, businesses can access a dollar-for-dollar credit to reduce taxes owed. All qualifying R&D costs can be expensed in the tax year when the costs were incurred.
Identifying R&D Costs in Your Business
At ReFOCUSed Business Consulting, we can help you identify applicable R&D costs that can be used for these tax credits. Examples include:
- Industry research
- Engineering services for product development
- Designing new or upgraded products
- Modifications to current product concept and design
- New technology development
- Designing, building, and testing models and prototypes
- New material experiments
- Research to improve product efficiency
- Software development
- Environmental Improvements
Credit eligibility is not only for new product development, but many ongoing operations and activities can qualify as well.
Personalized Business Consultation for Tax Credits
Some of the best tax incentives can be accessed through R&D credits, but most businesses are not taking advantage of these credits. Whether you are too busy in your business to identify R&D tax credits, or you don’t have the expertise or resources to enjoy these credits, our team is here to help. We can implement a plan that will bring cash back to your business by leveraging these available tax credits.
If you are interested in learning more, then ReFOCUSed Business Consulting is just a phone call away. We can help you lower your effective tax rate and create a system so you can realize tax savings for years to come. Contact us for a consultation to discuss your personalized consulting plan.