Recent Changes in the Research and Development Landscape: What Your Company Needs to Know
Included in the passing of the Tax Cuts and Jobs Act (TCJA) in 2017 was a “revenue raiser”…
Discover new ways to expand your business with the help of federal and state funding and guidance from Anders.
Federal and state tax credits and incentives can help fund new business ventures and offset project expenses. Whether your company is adding jobs, investing in new technology or expanding its footprint to additional locations, there are credits designed to help fund these projects. The Anders team will help identify relevant credits and incentives that can work for your business.
Hiring tax credits and incentives can help fund business goals of adding new staff to expand operations.
There are a variety of federal and state tax credits and incentives for businesses investing in renewable energy and energy efficient upgrades. Our advisors help businesses take advantage of these opportunities, including:
The Research and Experimentation Tax Credit, or R&D Tax Credit, offsets federal income tax liabilities for eligible research and development expenses dollar-for-dollar. The credit can also be used to offset payroll tax liabilities for eligible small businesses.
Real estate developers can take advantage of several tax credits and incentives depending on the property type and location. Aside from 1031 exchanges and cost segregation studies, below are two valuable credits for real estate.
No matter the size of your business or your unique credits and incentives’ needs, our specialists focus on the following industries and serve others as well:
Our manufacturing client had utilized the Research & Experimentation (R&D) tax credit in the past, but our team questioned if they were getting the maximum benefit from their current method of capturing research wages and related costs. By completing a full R&D study, we identified additional wages and supplies that could be included to bolster the client’s R&D credit opportunities for each year of the study. By amending the prior three years of tax returns, our team discovered over $350,000 in additional savings.
Under the old tax code, our client was subject to alternative minimum tax (AMT) and could not receive a benefit of research and development (R&D) credits. Once that rule was lifted, we suggested that the client take advantage of R&D credits. We have been able to claim Federal tax credits of nearly $50,000 for the company so far in years one and two.
A St. Peter’s based manufacturer had a facility expansion that called for the creation of 125 additional jobs, new equipment needs and an ongoing training initiative. We negotiated with the Missouri Department of Economic Development to procure nearly $2,600,000 in benefits from the Missouri Works program, $680,000 in property tax abatement and $100,000 in training grants.
An R&D Tax Credit study was performed for a client specializing in rapid turnaround and high volume engineering and manufacturing of custom tools and dies. The study identified $1,150,000 of Qualified Research Expenses (QREs) for the tax year 2015, resulting in a federal benefit of approximately $60,000 in tax credits.
Due to our familiarity with the Missouri Works program and the Chapter 100 Bond process, we assisted a Missouri-based manufacturer contemplating systematic plant expansion, equipment purchases and job additions in the procurement of state, city and local tax incentives in excess of $3.5 million.
Assisted a client with plans of adding jobs, purchasing equipment and expanding their manufacturing facility secure over $2.5 million in economic incentives from state, county and local governments through the Missouri Works program and the Chapter 100 bond process.
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