What if you could save hundreds of thousands of dollars annually in state and federal taxes—all thanks to work you’re already doing? Through research and development tax incentives, you can.
Many companies are unaware that their day-to-day operations could qualify for a dollar-for-dollar reduction of their income tax liability. Indeed, the R&D tax credit regularly provides a wide range of businesses with a source of extra cash—up to 10 percent of annual R&D costs for federal purposes and much more when state credits are factored in.
If your company attempts to create products that are lighter, faster, and less expensive or more durable, reliable, or precise, the R&D tax credit adds up to money you can reinvest in your business rather than pay out to the IRS or state governments. R&D credit eligibility is also much broader than many companies realize, applying to not only the development of products, but also activities and operations, such as new manufacturing processes, environmental improvements, software development, and quality enhancements.
Learn more about R&D tax credits.
Companies in many different industries can qualify for the R&D tax credit for activities they perform. These include:
Costs related to R&D may be eligible to be expensed immediately—even those costs not eligible for the R&D credit. Expenses incurred for software development, equipment used in your business, or other similar expenses are generally capitalized and depreciated over a specified period of time. If eligible as a qualified R&D expense, such costs can be immediately deducted, therefore reducing your overall tax liability in the current year.
Moss Adams performs more than 150 R&D engagements annually. We can examine all your company’s activities and determine which areas are eligible to take advantage of current R&D tax credit rules and regulations. We then help you identify qualified R&D activities—including those that can be expensed immediately—and assemble documentation to defend your claim based on our extensive knowledge of the law and your industry.
We work in an efficient and nonintrusive manner, so you can stay focused on your business. And we have a great deal of experience helping pass-through entities and partnerships such as LLCs, LLPs, C corporations, and S corporations claim the R&D credit. Whatever your R&D activity may be, we scale our services to fit your business needs and provide a customized solution that aligns with your goals.
Discover how you can turn R&D expenses into tax savings by filling out our complimentary benefits estimate request form. A Moss Adams professional will contact you with a preliminary estimate of the potential tax benefit to your organization.
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