The COVID-19 pandemic is affecting more than the health of millions of people around the world. Businesses of all sizes are feeling the pinch as spending habits have changed and economies are impacted by the slowdown. As a result, businesses are looking for creative ways to stay afloat so they can survive these uncertain times.
One potential solution to improve your financial flexibility is by claiming tax credits for money used in research and development. If you’ve worked on the improvement or development of a product, technique, process, invention, or formula, then it’s possible that you might qualify for an R&D credit.
Through the Research and Development program, we are able to do a look back and capture unrealized hard dollars (plus Carry-Forward Credits if applicable) that go back 3 years for Federal and 4 year in many states (including California). Additionally, our clients capture interest back for refunds they did not receive within those prior years. There could potentially be a large sum of money left on the table by not applying. For example, we can look back up to 3 years for federal and 4 year in many states (including California).
Case Studies: R&D Tax Credits During COVID
At ReFOCUSed Business Consulting, we’ve worked with multiple companies who are seeking out critical cash-generating solutions in order to survive the challenges within the current economic landscape.
These tax credits are more available than most business owners realize. Today, we want to highlight some of the results that have been achieved, helping you see the possibilities that lie in leveraging R&D credits for your business.
Here is an overview of some of the businesses we’ve helped recently:
- Annual Revenue approx. $6-7 million
- Identified approx. $260,000 in Tax REFUNDS for Federal and State R&D related to business activities from 2016-2019 PLUS Interest
- Annual Revenue approx. $14 million
- Identified approx. $210,000 in Tax REFUNDS for Federal and State R&D in addition to $37,000 in Carry-Forward Credits related to business activities from 2016-2019 PLUS Interest
- Annual Revenue approx. $750,000
- Identified approx. $53,000 in Tax REFUNDS for Federal R&D related to business activities from 2016-2018 PLUS Interest
- Annual Revenue approx. $450,000
- Identified approx. $40,000 in Tax REFUNDS for Federal and State R&D in addition to $6,000 in Carry-Forward Credits related to business activities from 2016-2019 PLUS Interest
Additional Industries with Realized Refunds
R&D tax credits can be used in a variety of industries – which is why we encourage you to reach out if you are looking for cash solutions. Here is a list of additional industries we can help with R&D tax credits.
- Commercial Construction
- Dental Practice
- Distribution Center
- Environmental Science
- GPS Tracking
- Machine Shop
- National Real Estate Broker Franchise
- Online Technology Firm
- Paving and Grading Organization
- Real Estate Investment Firm
- Roofing Company
- Tactical Training Company
- AND MORE …
Keep in mind that these tax credits aren’t limited to this list. If you are looking at financial options for your business, then ReFOCUSed Business Consulting is here to help. This personalized support can help you weather the storm of this pandemic and help your company grow in the future. Reach out to see if these services can be beneficial for your industry and business.