- What if I am already claiming the credit?
Many of our clients were already claiming some of the credits. However, the tax code is vast, and we work in the focused area of incentives. This is akin to your exceptional and seasoned CPA doing “brain surgery,” while we do “heart surgery.” We live and breathe incentives every day, following the new codes, cases and the ever-changing nuances since we are in the field daily.
- Can I claim the R&D credit even if all my manufacturing is overseas?
As long as the design and development work is done here in the US, manufacturing of the product can occur anywhere, whether the manufacturing is outsourced or the manufacturing company is your own.
- Do I need these credits if I plan to sell my business?
Because the credits can be claimed in one year and taken in another year, they can be transferred to new ownership. The credits also legitimize a company’s technology. A lot of small companies claim the credit every year because they are looking to be acquired by a larger corporation, and if they have R&D credits on their books, it proves they have technology someone else is likely to value.
- What benefits have your clients realized?
• Cash back from the IRS
• Permanent tax savings and financial statement benefit
• Create a vehicle to realize additional tax savings in future years
• Increased the market value, earnings power and cash flows of their company
• Lowered the company’s effective tax rate