Tax Reform has been and continues to be a hot topic. While the Trump Administration continues to develop its reform plan, an area that both sides seem to agree upon is the importance of encouraging businesses to invest in innovation and keep jobs on U.S. soil. A key incentive for businesses has been the Research and Development Tax Credit. This powerful tax savings tool – rewards businesses for the development of new products, processes, techniques, efficiencies and much more.
From Good Credit to Great Credit?
Already a lucrative credit for many businesses, it is now positioned to be even better! On June 6, 2017, a bi-partisan bill titled the “Invent and Manufacture in America Act” was introduced to the U.S. Senate by Senators Chris Coons (D-DE) and Pat Roberts (R-KS). What’s so exciting about this bill is that it would enhance the credit for companies that conduct R&D in the U.S. and those who manufacture products because of R&D that took place in the U.S.
The bill would not only encourage domestic development and design but also keep the resulting production within the U.S. It would also increase the value of the R&D credit by up to 25% for companies who perform most of their manufacturing in the United States. As the percentage of the company’s U.S. manufacturing increases, the credit would increase proportionately. If enacted, the bill will be particularly attractive to small, and startup businesses as the credit will increase cash flow and reduce tax liabilities.
Show Me the Money
Want to reap the benefits of the R&D Credit, but aren’t sure if you qualify? Stambaugh Ness has an experienced team of tax professionals who perform Research and Development Tax Credit studies for companies of all sizes in various industries including manufacturers, architects, engineers, and contractors. Start the process of keeping more of your hard-earned money today – with an R&D Assessment.