A new tax regulations, finalized in 2003, make it significantly easier for more manufacturing companies to qualify for the Research and Development Tax Credits. Every year, the R&D credit yields billions of dollars in federal and state benefits. Thousands of companies take advantage of the credit across several industries. Some of the common industries that qualify for the R&D tax credit include, but are not limited to:
INNOVATION AND COMPETITIVENESS
If your company has invested time, money and resources to improve product quality, and internal processes our team of experts can work with your management team to help determine if your company is in a position to benefit from this fund.
THE POTENTIAL BENEFITS OF R&D Tax Credit
· Dollar for dollar credit against taxes owed or previously paid. Up to 13.5 cents of R&D credit for every qualified dollar
· Carry forward credit for future profitable years
· Immediate increase in company cash flow
Look back studies can recognize unclaimed credits for open tax years
(generally 3 or 4 years)
Parts manufacturer with $1.2 million a year in payroll receives $142,000.00 credit.
Sheet metal manufacturer with annual sales of $20 Million, annual payroll of $4 Million, and a subcontract cost of $1M receives a Net Benefit of $250,000.00
Small furniture manufacturer with $600,000.00 in annual payroll receives $31,200.00 net tax benefit
Engineering based cost segregation studies permit commercial real estate owners to reclassify real property for depreciation purposes and reclassify it as more rapidly depreciating personal property. This reclassification results in significant cash flow benefits in both present and future years through considerably shorter depreciable tax life and accelerated depreciation methods.
We do an initial consultation and develop a feasibility report to determine the cash flow and net present value (NPV) benefit potential. Our professionals evaluate your current tax status and your future business plans along with your CPA to determine if a full study would benefit your company.
The result is an instant tax benefit to the client to offset any taxes they owe; or in some cases, provide much needed cash flow to the business.
Although, cost segregation affects meaningful federal income tax reduction, it is not a tax shelter; it is guided by detailed IRS regulations.
How much cash are we talking about? On average, about $150,000 in additional depreciation per $1 million dollars in purchase or construction cost over the normal 39 year SL method.
PROPERTIES MOST LIKELY TO BENEFIT
Owner of Office Building with purchase price of $5M - CSS 5 year tax savings (cash flow improvement) of $625,678
Owner of Apartment (12) Complexes worth $18M - CSS 5 year tax savings (cash flow improvement) of $1,585,222
Owner of Hotel unit worth $7,123,456 - CSS 5 year tax savings (cash flow improvement) of $812,145
The studies are not limited to new buildings or new renovations. Over 75% of our projects are on older properties using the “catch up” method which can produce significant results. Although some building owners and CPAs have heard of Cost Segregation, this program is actually an engineering study.
It is estimated that 90% of real estate investors are overpaying federal income taxes due to understated depreciation?
Workers Opportunity Tax Credit or WOTC, is a Local, State, and Federal tax incentive program that allows for employers reduce the taxable liability of private-for-profit employers for the hiring of qualified individuals. Tax credits can range from $2,400 to $9,600 per qualified hire. The PATH Act of 2015 has significantly expanded the platform of Hiring Incentives. Local, state, and federal tax incentive programs allow employers to reduce taxable liability of private-for-profit employers for the hiring of qualified individuals. Some of the programs that we look into on your behalf are the Work Opportunity Tax Credit, Hiring Incentives Restore Employment Act and the Small Business Jobs Act.
Hiring tax incentives are available to companies that are growing and creating net new jobs; companies that are experiencing a high turnover in a given year; as well as companies that have seasonal employment swings such as retail chains, warehouses, manufacturers, restaurants, hotels and motels. Our experts are here to provide guidance on how to maximize the incentives you receive when hiring new employees; summer youths, new adults, new disabled veterans as well as benefits for each new long term family assistance recipient hired over a two year period.
With APBTS and GMG Partners, we make the process simple to save you time. Our proprietary software will guide you through the process. Job candidates answer only a few questions using our proprietary software. Upon hire we automatically submit the necessary paperwork for approval. Once approved we provide the documents to receive the benefit.
Calculate your savings now!