There are numerous programs to help manufacturers reduce their tax burden. As an example, some companies may be unaware that many of their efforts to design products qualify as Research & Development and may make them eligible for tax credits for expenditures associated with these activities. ITAC can help you uncover and describe the activities that qualify and assist you in getting the appropriate tax credits.
The R&D Tax Credit is an incentive that provides credits for company expenses related to product or process improvements. It’s not a tax deduction, it’s an actual dollar-for-dollar credit against taxes owed or paid. Virtually all business taxpayers can receive it. Last year, we helped NYC manufacturers realize an average credit of $188K for their research and development efforts. If you haven’t applied, you’re leaving money on the table.
A common misconception about the R&D tax credit is that it is solely for scientists and traditional white lab coat activities – this is not the case. Any company that designs, develops, or improves products, processes, techniques, formulas, inventions, or software may be eligible.
Examples of eligible activities include:
• Developing new products or improving existing ones
• Automating or improving internal manufacturingprocesses
• Everyday trial and error experimentation to get “things” just right
• Testing new concepts, formulations, materials, tools and procedures
• Implementing cost reduction initiatives
ITAC has simplified the claims process for this lucrative credit. We work with R&D Credit experts who manage your preparation and application, and implement procedures to help you qualify for future credits.