We’ve just finished getting through another tax season. While it feels good to have another year of searching for receipts and calculating costs behind, it’s a reminder of how much we have to pay out in taxes each year.
How would you like to get some of those taxes back?
It is possible to revisit credits and rebates that you may have coming to you even after you’ve already filed and closed the books on your past tax returns.
The tax code is ever-changing and seems to get more complicated all the time. Often, laws are passed with certain business tax credits or rebates folded in that companies may not even be aware of.
This is like leaving money on the table that you could be recapturing to invest back in your business for technology upgrades, advertising campaigns, expansions, and more.
I am working with a partner I met through a Technology Business Group. They bring tens of thousands of dollar$ into businesses by identifying and recovering Research and Development Credits.
This is different from the normal expenses and depreciation credits you normally write off on your taxes.
What Is the Research & Development Tax Credit?
Congress enacted R&D tax credits in 1981 as part of the Economic Recovery Tax Act. Since that time, this credit has been extended and was made permanent in 2015.
You don’t have to be Tesla or Microsoft to take advantage of the Research and Development Tax credit. It’s not just about inventing new innovations, it’s also about improving things.
How Does One Qualify?
Four elements qualify a business that’s spent money on qualified research activities or projects. These are:
- Permitted Purpose: The activity or project “must be to create new (or improve existing) functionality, performance, reliability, or quality of a business component. A business component is defined as any product, process, technique, invention, formula, or qualified computer software that the taxpayer intends to hold for sale, lease, license, or actual use in the taxpayer’s trade or business.”
So, if you work on a project to improve the software or business processes that you use, that could qualify for an R&D tax credit.
- Elimination of Uncertainty: You must use a process designed to eliminate uncertainty about the development or improvement of the business component.
- Process of Experimentation: You must use a systematic process for evaluating one or more alternatives.
- Technological in Nature: You must employ a scientifically sound experimentation process (using physical or biological sciences, engineering, or computer science)
What Does It Cost to See If I Qualify for Money Back?
There is no charge to determine eligibility. The service makes their money as a % of the recovery, so there is no risk on your part.
If you qualify, you can recover your past credits and take advantage of future Federal, State, and local credits and incentives.
This service does not compete with or replace your current accountant.
Just think back to some of the recent improvements or upgrades you’ve made to your business over the last few years. I’m sure that more than a few spring to mind.
You might qualify for additional money back, and I’d like to set you up to talk to a principal of the company that provides this service for a 20-minute chat.
If you have interest, let me know and I’ll set up an introduction. Just mention “Sean @ Magnify247” as a referral code.
What Types of Businesses Typically Qualify for This Credit?
You may be surprised to know that multiple industries can qualify for this tax credit. Since it’s based upon both development and improvement of business components, nearly any type of company could qualify.
Just to give you an idea of the scope of companies that may be able to take this credit, below is a partial list of qualifying types of companies…
- Financial Services
- Consumer Products
- Food Processing
- Medical Devices
- Fashion Designer
- Chemical & Plastics
- Website Development
- AND MANY MORE
What’s My Next Step to See If I Qualify for R&D Tax Credits?
Magnify247 can connect your Hamilton County business to the experts that can see if you’ve been leaving some of your tax credits on the table.
Let me know if you have any questions and I look forward to working with you. And remember – mention “Sean @ Magnify247” as a referral code.