Home R&E Tax Credit Basics
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Basics of the R&E Tax Credit |
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The R&E tax credit programs are an important part of the federal government’s plan to encourage corporate investments to advance and improve products and services. Most successful companies are eligible for this credit. Chances are that many of your routine investments of time, money, and resources are eligible for the credit. This R&E Tax Credit Opportunity: - Can provide significant cash for your company;
- The R&E tax credit is an actual dollar-for-dollar credit against taxes paid or taxes owed—this is not a deduction;
- Is additional to the normal tax deductions applied to the expenses generated by these R&E activities;
- The credit earned directly reduces taxes, and could therefore be considered as a bottom-line profit.;
- The credit can be applied to all open tax years; and returns can be amended for at least three years;
- The credit can carry forward for twenty years if your company is in a net operating loss or AMT tax position for a particular year;
- Recent changes to the tax law and IRS guidelines & interpretations are friendly to the taxpayer;
- Many states offer an R&E tax credit in addition th the federal credit.
Question—The IRS returns $7.5 Billion annually to taxpayer corporations through this credit—are you one of the recipients?
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