What are Research and Development Tax Credits?
(Section 41: Credits for Increases Research Activity, TITLE 26, Subtitle A, Chapter 1, Subchapter A, Part IV, Subpart D, Sec 41.)
R&D Tax Credits are a dollar for dollar tax credit incentive offered by the United States Government that reduces, eliminates or recovers Federal Taxes based on profits.
In December 2001, the definition of R&D expanded to include many disciplines of manufacturing. These new tax regulations enable small and mid-size companies to be eligible to take the R&D (wage based) Tax Credit.
  
What types of Activities Qualify for R&D Tax Credits?
- OEM & Sub-Contract Manufacturing, Machining,
- Fabrication, Welding, Forging, Casting, Hydroforming, Molding
- Prototyping or Modelling
- Testing or Quality Assurance: ISO 900X, UL, Sigma Six or other Certifications
- Engineering of any kind
- Integration of new machinery (CNC, SLA, SLE, etc) into an existing process
- New Product Development or Improvement
- In Process Development or Improvement
- Developing tools, molds or dies
- Developing New Concepts or Technologies
- Software Development or Improvement (internal use or for external sale)
- Design- Layout, Schematics, AutoCAD
- Automating or streamlining internal processes
 
Why use an Engineering Firm?
In order to offer your company intensive R&D analysis and unparalleled substantiation, we provide our clients with the necessary expertise to uncover ALL qualified Research and Development activities as defined by the IRS.
- We bring together the technical and engineering aspects manufacturing and combine that with understanding of the legal intricacies of the Internal Revenue Code (IRS) Section 41
- Our Staff included the industry's most experienced IP Attorneys, Engineers, Scientists and IRS Audit Experts and CPA's
- Our firm serves clients in the United States and Canada
- We have helped companies recover over $200 million in R&D Tax Credits
    
We encourage ALL CFO's and CEO's of Manufacturing Companies to Conduct a Qualifying call with one of our Manufacturing Engineers! This is a NO COST way to ensure you are maximizing your R&D Tax Credits!
By providing estimates of the last three years of payroll data, our Engineers can calculate an approximate tax credit benefit and determine your company's technical qualifying criteria. By the end of a 10 minute call, we will advise you whether or not there is a benefit to your company in pursuing the tax credit.
IRS CIRCULAR 230 NOTICE AND DISCLAIMER: To ensure compliance with requirements imposed by the IRS through Circular 230, we inform you that any tax advice provided or contained in this communication (including any attachments) is not intended or written to be used, and it cannot be used by the recipient or any other taxpayer (i) for the purpose of avoiding tax penalties that may be imposed on the recipient or any other taxpayer, or (ii) in promoting, marketing or recommending to another party a partnership or other entity, investment plan, arrangement or any other transaction or matter addressed herein.
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