Research & Development Tax Incentives

The Importance Of Taking Advantage Of Available R&D Tax Incentives

If your company has spent time and resources to innovate and improve its products, you have probably incurred research and development costs that qualify for federal, state or international research and development tax incentives.

R&D tax incentive opportunities are available in almost every type of business where products and services are created, manufactured and distributed, and can exist in companies with as little as $5 million in yearly revenue. While the amount of the incentives is usually related to the size of the company, it is always beneficial and meaningful to the bottom line and the effective tax rate.

If you have invested in product development and process improvements, General Financial and Tax Consulting can help you pay for them through capturing new R&D incentives or increasing existing R&D incentives through our audit program.

Many companies wonder if they are entitled to R&D tax incentives. What qualifies? How much incentive are you missing? If your company engages in product development or process improvement activities, including distribution, warehouse, manufacturing process innovation, software creation, or other similar activities, you may be eligible for R&D tax incentives.

Although some companies do not design their own products, they spend time, money, and resources improving their production and distribution processes. Federal government rules dictate that creditable research must be technological in nature, constitute a process of experimentation, and intend to result in a new or improved business component. State rules can vary from state to state. The foreign countries that have incentives all have varying laws, rules and regulations. But the bottom line is the same – R&D tax incentives can save your company significant money and increase cash flow.

How It Works

GFTC begins by obtaining in-depth knowledge of your product development and distribution processes. For companies with an established documentation process, we will audit that process to ensure that correct and complete information is supplied by all relevant individuals and departments involved in the process.

For companies with no established process, we will create that process and documentation for them. By following our methodology, we have helped many clients double or triple the amount of tax incentives they can claim.

In addition to uncovering new or increased R&D tax incentives, we also create a customized “how-to” software program that enables our clients to establish an improved and accurate tax incentivecredit process for the future. Using this program ensures that a company maximizes every available future R&D tax incentive opportunity.

How You Can Benefit

GFTC’s R&D tax incentive services can help your company save money by identifying all potential incentive opportunities. Benefits also include:

• Immediate increase in cash flow
• Reduction in current tax liability as a result of permanent tax savings and income benefits
• Lowering the effective tax rate
• Standardized and documented approach to identifying available incentives for future years

Even in companies with current net operating losses, these incentivesis credit can be taken back for all open tax years and can be carried forward for up to 20 years. This translates to putting money aside to offset current and future liabilities.

Get Started

Whether you are ready to get started or have additional questions, the first step is to contact GFTC. We want to hear your questions and explain how we can work with you. Many of our clients have similar questions, and you may be able to benefit from their experience. Start by filling out and submitting the contact form on this web site. If you would like additional information, have more questions, or want to discuss your situation, call us at (800) 733-5252 ext. 7000.