Are you taking advantage of IRS regulations that have been issued for research and development tax credits for businesses?
Research and development tax credits were established in 1981 by the Economic Recovery Tax Act of 1981 as a temporary credit, which has been extended 13 times. It provided for a 20% credit for qualifying expenditures over a base amount, increasing annually. Recently, the research and development tax credit was extended through December 31, 2009.
Take advantage of your business’ research and development credits. Honkamp Krueger & Co., P.C. can help. Let's take a look at the activities that may qualify as research and development and the common industries involved.
Activities that may qualify as research and development:
- Manufacturing products
- Developing new products, processes, formulas, software, techniques, etc.
- Improving on existing products, processes, formulas, software, techniques, etc.
- Creating more reliable products, processes, formulas, software techniques, etc.
- Developing prototypes or models including computer generated
- Designing of tolls, jigs, dies, molds
- Applying for patents
- Testing new concepts
- Certifying quality
- Sourcing raw material
- Developing new technologies
- Improving existing or building new facilities
- Attempting the use of new materials, concepts, processes
- Developing custom software for internal uses
- Developing or design new systems utilizing existing products
- Creating new formulas or products to enter new markets or industries
Common industries that qualify for research and development tax credits:
- Manufacturing
- Plastic and Injection Molding
- Aerospace and Defense
- Food Processing
- Contract Manufacturing
- Distribution (Systems)
- Financial Institutions (Systems)
- Medical Device Manufacturers
- Software Development (for sale)
- Agriculture, Dairy Farmers and Wineries
Honkamp Krueger partners with
Tax Projects Group. They have many years of experience and have performed numerous successful research and development tax credit studies.
Contact us to discover if you are a good candidate for a research and development tax credit study.