Research & Development Tax Credit - If you manufacture goods, employ technical personnel, develop prototypes or new technologies or spend money on consultants to do these things read on…

Since the IRS has made it much simpler to claim this credit, many companies are missing the opportunity to save taxes because they don’t realize they may qualify.

IRS regulations finalized in 2003 make it significantly easier for more companies to qualify for the Research & Development Tax Credit. Record keeping requirements have been liberalized. The discovery test relating to new information has been significantly eased. Process improvments are now included as a qualified activity.

Who Qualifies for the Credit?

A Company Qualifies when One or More of These Criteria Are Met:

• Fights to survive international and domestic competition.
• Invests time, money or resources to advance or improve their products or processes.
• Manufactures products.
• Maintains a staff of technical personnel such as engineers, designers, labs, chemists.
• Invests in continuous improvement projects.
  Implements cost reduction initiatives.
• Attempts to use new materials.
• Adds new equipment.
• Develops prototypes, jigs, fixtures and molds.
• Automates or streamlines internal processes.
• Develops new technologies.
• Performs testing functions.
• Develops, implements or upgrades systems or software.
• Develops proprietary software applications for resale.
• Obtains patents.
• Spends money on outside consultants to do any of these things.
  
  

SOME EXAMPLES OF THE BENEFITS OF R&D TAX CREDIT STUDIES

To find out if you may qualify, just click here and answer 3 short questions