On September 8th, 2023, the IRS and Treasury released Notice 2023-63. This notice provides guidance on the amortization of specified research or experimental (SRE) expenditures under section 174. This was welcome news for taxpayers and practitioners who have been long awaiting guidance on several areas of uncertainty since the changes were introduced in the Tax Cuts and Jobs Act in 2017. It is important to note that taxpayers may rely on this guidance for tax years beginning after December 31st, 2021, or choose not to act on the guidance until final regulations are effective. However, even if ..read more

Research and Development (R&D) tax credits offer a valuable opportunity for businesses to recoup a portion of their R&D expenditures and promote innovation. However, navigating the complexities of R&D tax credit claims can be challenging. Many companies face common hurdles that can hinder their ability to maximize the benefits of these incentives. In this article, we will explore some of the common challenges encountered when claiming R&D tax credits and provide strategies to overcome them effectively. Lack of Awareness and Understanding One of the primary challenges businesses ..read more

Partnering with an R&D tax consultant can offer many benefits to businesses looking to take advantage of R&D tax credits. Here are some of the key benefits: 1. Expertise and Experience R&D tax consultants have extensive knowledge and experience in navigating the complex R&D tax credit law and regulations. They can help businesses understand the eligibility requirements and ensure that they are claiming the maximum federal and state credits available to them. This expertise can save businesses time and money by avoiding common mistakes and oversights that could limit their cred ..read more

As a business owner, you’re always looking for ways to reduce your tax bill and keep more of your hard-earned money. One often-overlooked option for small and mid-sized businesses is the Research and Development (R&D) tax credit. Many associate the R&D tax credit as only being available to those in high tech industries. However, the R&D tax credit is available to any business that invests in innovating its products, processes, or software. What many people don’t realize is that the R&D tax credit can also be used to offset payroll taxes. This means that businesses that are not ..read more

Changes enacted under the 2017 Tax Cuts and Jobs act are now fully in effect for tax years beginning after December 31, 2021. One of the key changes, along with required amortization of research and experimentation expenses, were changes to the 280C election. Previously, if a taxpayer chose not to make the 280C election it was required to reduce its research expense deduction by the amount of the credit being generated. Many taxpayers chose to make the 280C election as it prevented any impacts to foreign, state, or local taxable income. However, due to changes in the Tax Cuts and Jobs Act, tax ..read more

Research and development (R&D) is a crucial component of the manufacturing industry. It allows companies to develop innovative products, streamline processes, and improve their overall efficiency. However, R&D can also be an expensive and risky endeavor, which is why governments around the world have implemented R&D tax credit programs to incentivize companies to invest in innovation. Qualifying for the R&D Tax Credit Manufacturing companies are particularly well-suited to take advantage of the R&D tax credit. This is because they are constantly developing new products and ..read more

In today’s competitive market, R&D tax credits are becoming progressively important. The tax credits provide a financial incentive for companies, and are beneficial to businesses of all sizes, from startups to well-established multinational firms. Why is the R&D Tax Credit important for your business? 1. Incentivizes Innovation R&D tax credits are intended to incentivize businesses to invest in projects that would advance innovation, increase productivity, and promote economic growth. 2. Affords Investment R&D can be expensive and time-consuming, but tax credits help to reduce ..read more

Cost segregation study is a tax strategy that enables real estate property owners to reclassify certain building components as personal property, which has a shorter depreciation life than real property. This process enables property owners to accelerate the depreciation of these assets and reduce their taxable income. And this results in significant tax savings. In this article, we will explore the various benefits of conducting a cost segregation study for your real estate property. 1. Lower Taxable Income One of the primary benefits of cost segregation is the ability to lower your taxable i ..read more

The Research and Development (R&D) tax credit is a valuable opportunity for construction companies to receive a tax reduction in exchange for investing in innovation and progress. If your company is involved in developing new or improved construction methods, materials, or technologies, you may be eligible to receive a tax credit. This article will outline the key details of the R&D tax credit and explain how construction companies can take advantage of it. Eligibility for R&D Tax Credits To be eligible for the R&D tax credit, a construction company must conduct research and de ..read more

In this blog article, we will explore the significance of R&D tax credits in fostering innovation within the renewable energy sector, and how they contribute to shaping a cleaner and more sustainable future for all. In the face of pressing environmental challenges, the world has witnessed a pivotal shift towards renewable energy sources. As governments and businesses alike recognize the importance of transitioning to sustainable practices, renewable energy research and development have emerged as a powerful catalyst in driving advancements in solar, wind, and bioenergy technologies. Empowe ..read more