After repeated failures to pass similar legislation, the U.S. Senate voted Tuesday to extend the investment tax credits for solar and other renewable energy sources as well as renew the R&D tax credit for another year, the Associated Press reports. The $17 billion renewable credits package (known as the “Energy Improvement and Extension Act of 2008,” an amendment to HR 6049) is part of a major tax relief bill approved in a 93-2 vote. The House could take up its version today. The House bill diverges from the Senate in that it fully pays for the business and individual tax breaks by eliminating some tax breaks for hedge fund managers and for firms doing business overseas. Read More →
The country came very close to a complete financial meltdown last week. We’re not out of the woods yet.
So, what does this mean for you and your business or if you are a CPA, your clients if you need cash to buy inventory, finance payables, or fund payroll?
Focus On Opportunities:
Here are four proven ways businesses can increase cash flow. Read More →
Current legislation has revolutionized Research & Development credits allowing more businesses and their activities opportunity to take advantage of these benefits than ever before.
What is the Research & Development Credit?
The Research & Development Credit is a federal tax benefit providing incentives to companies to invest in activities for the development of new and improved products, software, and manufacturing processes thereby reducing their tax liability and increasing funds available for future innovation.
Primarily a labor-based incentive, the R&D Credit applies to activities undertaken to develop new and improved products, processes, software and formulas such as:
• Developing new products
• Improving existing products
• Developing new materials
• Building and testing prototypes and models
• Developing new or improved software applications
• Testing new concepts
• Developing or improving production or manufacturing processes
• Developing, implementing or upgrading systems
• Paying outside consultants/contractors to do any of these activities
Any company involved in the development, improvement or refinement of products, processes and formulas may qualify. If your company has been engaged in these types of activities for the last several years, you may be eligible to retroactively claim the R&D Tax Credit for federal and state income tax purposes, obtain significant cash refunds, and establish a methodology to continue claiming these credits in future years.
• General Manufacturing
• Hardware Development
• Software Development
• And others
• Immediate source of cash (via tax refunds) by capturing and recovering tax credits for prior year(s)
• Reduction in current-year tax
• Source of permanent tax savings and financial statement benefits
• Increase in market value, cash flow, and company ROI
• Source of potential benefits for future R&D activities
• Carry-forward of unutilized credits for 20 years
Are You Missing The Opportunity For Substantial R&D Benefits?
The Research & Development (R&D) tax credit is one of the most significant domestic tax credits available – a substantial tool for maximizing your company’s value. Because the R&D Tax Credit is a resource-intensive and highly specialized process, we have discovered that many companies simply cannot develop and substantiate the necessary R&D documentation. Additionally, another challenge is capturing all R&D opportunities that currently exist. The SourceCorp R&D Tax Credit Team can help improve your benefits and limit your exposure.
Free Preliminary Analysis
A free preliminary analysis can give you an idea of how the Research & Development Credit can benefit your company. Contact us today to apply for free analysis.
10 Reasons Why Businesses Choose SourceCorp:
1. Trusted, experienced, reliable and financially stable:
Founded in 1983, and owned by Apollo Management, Inc., a private equity firm based in New York, we bring experience, reliability and stability as compared to many newcomers to the industry that have little to no experience nor can provide long-term presence in the event of an IRS audit.
2. We go beyond SOX compliance:
We have successfully implemented process controls and data security measures that meet or exceed the following standards: Sarbanes-Oxley Act of 2002, Gramm-Leach-Bliley Act of 1999 (GLBA), and the Health Insurance Portability and Accountability Act of 1996 (HIPPA). Additionally, we carry $2M errors and omissions liability insurance with best-rated insurance firms.
3. We build lasting relationships:
We are a tax benefit service company specializing in tax areas requiring significant accounting, financial, business, manufacturing, engineering and technology expertise. We are not a CPA firm, but because we have many CPAs on staff and in executive management, we understand the unique CPA/client relationship and work with your accounting firm or in-house accounting manager. As such, we build long-term relationships with our clients providing significant and leveraged experience and synergies. We bring value by helping you become more efficient and profitable.
4. We become your one-source resource:
As your single-source specialized tax benefit provider, we can save you time and money. We deliver all the different elements of a specialized tax benefit service – a turnkey approach – that is not only more convenient, but is the most effective method to streamline the entire process.
5. We will find the maximized benefit:
We ensure the maximum benefit possible based on our 25-year experience, technical expertise, and understanding of your industry.
6. Complimentary review:
We will honestly tell you in advance whether or not the tax benefit is warranted before you engage our services. In other words, you get to see up front whether or not to pursue the benefit. As a result, our clients trust our counsel and have partnered with us for decades.
7. Complimentary audit assurance and support – we take responsibility:
We have successfully defended our studies during IRS examinations and have withstood the scrutiny of IRS audits as well as hundreds of CPA reviews. We don’t charge for Audit Insurance because we stand behind our work and we believe it’s the right thing to do. With other businesses here today and gone tomorrow, it makes sense to partner with a firm with a long history, financial strength, and one recognized as the industry leader. We provide up to 40 complimentary IRS audit support hours with every study we perform.
8. We are responsive:
We believe that our client relationships are a non-renewable resource. When you contact us, you can expect to receive a reply in 4 hours or less. Moreover, on average, our studies can be completed from initial analysis to final documentation from 2-6 weeks. With more than 70 full-time staff members including CPAs, engineers, business professionals, marketing, tax specialists and with offices located throughout the US, we don’t outsource our work, so you’ll receive an answer from the people who are knowledgeable, experienced and passionate about your business in short order.
10. We guarantee our work:
If you’re not 100% satisfied, we will make it right.
SourceCorp is the nation’s leading consulting firm specializing in Research & Development Tax Credit Studies. Our strength is in understanding the complexities of taxation and construction engineering – we help clients pay less tax and save more money. SourceCorp offers a turnkey, comprehensive R&D Tax Credit service that identifies and recovers Research & Development (R&D) tax credits available for your business so that you pay less tax and save more money.
Today President Bush signed into law H.R. 3221, the Housing and Economic Recovery Act of 2008.
Section 3081 of the Act allows certain taxpayers to accelerate R&D and AMT credit carryovers by electing to trade current year bonus depreciation for pre-2006 R&D and AMT credits. Read More →
Hard to believe, but many businesses are not aware of the research tax credit. Smaller, private companies, including those owned by venture capital funds simply leave money on the table. Fortune 500 companies know about the R&D credit and take advantage of it, but smaller companies have not yet realized that the R&D credit is a way to put cash into their business.
Some Recent Client Examples:
• A $49 million plastic blow-molder received a $283,000 benefit
• A $42 million metal fabrication company took a $704,000 credit
• A $24 million equipment manufacturer grabbed a $356,000 benefit Read More →
Small and mid-size companies should take advantage of the R&D tax credit, as soon as Congress passes the inevitable extension. The Research & Development (R&D) tax credit is a significant domestic tax credit – a substantial tool for maximizing a company’s value.
Hard to believe, but many businesses are not aware of the research tax credit. Smaller, private companies, including those owned by venture capital funds simply leave money on the table. Fortune 500 companies know about the R&D credit and take advantage of it, but smaller companies have not yet realized that the R&D credit is a way to put cash into their business. Read More →
According to a survey released June 18, 2008 by the National Association of Manufacturers (NAM), The Manufacturing Institute, the Canadian Manufacturers and Exporters (CME) and Deloitte, the largest number of North American companies (44 percent) say they intend to expand production in the United States over the next three years. And 57 percent of U.S. manufacturers say they will become more globally competitive over the next five years across the supply chain from sales, marketing and customer service to engineering and information technology.
Nearly 80 percent of respondents identified tax cuts for manufacturers as the key factor promoting innovation and research & development (R&D).
The survey, Made in North America, reflects the views of 321 top-tier executives in a broad range of North American manufacturing companies of all sizes. The majority of companies represented in the survey (45 percent) are based in the U.S.
The Research & Development (R&D) tax credit is one of the most significant domestic tax credits remaining under current tax law – a substantial tool for maximizing a company’s value.
Because the R&D Tax Credit is a resource-intensive and highly specialized process, we have discovered that many companies simply cannot develop and substantiate the necessary R&D documentation. Additionally, another challenge is capturing all R&D opportunities that currently exist.
The SourceCorp Research & Development Tax Services team is comprised of full-time, highly experienced and uniquely qualified R&D professionals. We can help improve your benefits and limit your exposure. Read More →