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Research and Development Tax Credits

Research and Development (R&D) Tax Credits are often misunderstood by both tax practitioners and business owners. Yes, the technology industry is a clear beneficiary, but many other industries can benefit as well. Companies that not only develop but improve products or processes can take advantage of R&D tax credits. For example, if your company has made your products faster, more cost effective or more durable, the costs associated may be eligible not only for federal R&D tax credits, but state credits. Such process improvements as those that result in better quality or more environmentally friendly production may also meet the qualifications for R&D tax credits.

To the extent you are identifying R&D expenditure, you may be opting to amortize over 60 months or even writing off the expense over 10 years. Why? In some cases certain R&D expenses can be deducted in the current year or, if you have neglected to claim eligible credits in past years, you might be able to file an amended return for all open years (three years back, plus current year).

In other cases, you may be aware of R&D tax credits, but may not believe their expenses are significant enough or are wary of claiming unqualified activities. By offering expertise in the R&D tax area, NPA will provide reliable back-up for their R&D claims.

Industries that may benefit:

– Manufacturing, including chemical production, consumer products and industrial equipment
– Construction/Building Equipment Installation
– Food & Beverage/Food Sciences
– Automotive
– Engineering, including energy efficiency and design improvement
– Technology/Software Development
– Agriculture
– Health Care/Life Sciences
– Professional Services
– Retail