|
|
| WHAT QUALIFIES?
Available to All Industries
You do not have to work in a lab or for a high-tech company to qualify. We offer help to companies in almost every industry claim and support R&D benefits, including:
- Aerospace
- Biotech
- Computer hardware
- Distribution
- Engineering services
- Food manufacturing
- Government contracting
- Manufacturing
- Oil and gas
- Retail
- Software
- Transportation - Automotive
- Chemical manufacturing
- Consumer products
- Energy
- Financial services
- Furniture
- Life sciences
- Medical manufacturing
- Pharmaceuticals
- Services
-Telecommunications
- Utilities
Generally, if you pay for or perform services to develop or improve a product or process in any of the following areas, you may have an R&D credit:
- Engineering
- Software development
- Computer sciences
- Biological sciences
- Physical sciences
More specifically, if you attempt to develop or improve any of the following in any of these areas, you may have an R&D credit:
- Products
- Processes, e.g., manufacturing
processes
- Computer sciences
- Software, either
- For sale; or
- For internal use, e.g., to
monitor, control, or support:
- Production processes
- Customer services
- Distribution centers
- Supply chain
management
- Product development
- Formulae, e.g., chemical formulae
used in food manufacturing
- Techniques
- Inventions
Are you getting all of the timely and useful information you need? Sign up now for our weekly eNewsletter. |
R&D Tax Credits and
Incentives - Introduction Stambaugh Ness, through its BDO relationship, offers R&D professionals who have helped hundreds of companies in virtually every industry claim - and sustain on exam or at appeals - more than $2 billion of these R&D benefits: Tax Benefits - R&D credits and deductions
- Sometimes available for the same dollars in two, even three countries
- Investment credits
- Tax exemptions or holidays
- Accelerated depreciation
- Training incentives
Non-Tax Benefits - Cash subsidies and grants
- Government-sponsored centers/programs
- No- or low-interest loans
- Reduced red tape
Example: Your U.S. R&D Tax Credits
A company incurred $10 million in qualified research expenses ("QREs")1 for activities in California2 in each of the past four years. Its benefit could be as much as:
| | Federal | California | Total |
|---|
| 2007 | 780,000 | 960,375 | 1,740,375 |
|---|
| 2006 | 650,000 | 960,375 | 1,710,375 |
|---|
| 2005 | 650,000 | 960,375 | 1,710,375 |
|---|
| 2004 | 650,000 | 960,375 | 1,710,375 |
|---|
| 2003 | [3] | 960,375 | 960,375 |
|---|
| Total | 2,730,000 | 4,801,875 | 7,531,875 |
|---|
1 QREs include taxable wages, a % of contractor expenses, and the cost of supplies, paid or increased for "qualified services."
2 The majority of U.S. states have credits. Credit rates vary.
3 Federal credits for this and earlier years may be available, even though these years are closed by the statute of limitations.
Contact Director of Tax Services, Jolleen E. Biesecker, CPA, MSTax, for more informtion about our R&D Tax Credit Services. You can reach her at 717-757-6999/800-745-8233. Find out more about our: Sales and Use Tax
Green Energy Tax Services General Tax Services Stambaugh Ness Services |
| |
|
|