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R&D Tax Credit Detail

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Research & Development Tax Credits, an underutilized benefit

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• Research and Development Tax Incentives• “With the current economy, it is ever more important for businesses to

explore every avenue of tax savings, and with more than 7,000 federal and state tax credits and incentives available, failing to pursue them aggressively simply doesn’t make sense.”—Les Bryson, R & D Magazine, 2/2010

• If your company has invested time, money and resources to the advancement and improvement of your company’s product or processes, then you likely qualify for the Federal R&D Tax Credit Incentive Program. However, many firms are unaware of how or even what to qualify; thus, the opportunity goes unclaimed.

• The R&D Tax Credit Opportunity• A hidden and immediate source of cash for many small and mid-size companies;• A significant reduction to current and future year’s federal and state tax liabilities;• Over $5 Billion in federal R&D tax credit benefits are given out annually;• Approximately 80% of the $5 Billion goes to a few of the nation’s largest

companies;• Every successful company is potentially eligible for an R&D tax credit of some

amount;• Many companies are unaware their day-to-day operations can qualify;• The 20% research tax credit is not a deduction. It’s an actual dollar-for-dollar credit

against taxes owed or taxes paid. Plus the taxpayer may be able to expense all such costs in the year incurred.

• A business can take the credit for all open tax years – generally the last three, or four years plus the current year;

• Additional years may be available if taxpayer is in a net operating loss or alternative minimum tax position;

• Tax credits may carry forward 20 years;

• Advocates For Savings will provide a free consultation and feasibility report to determine the cash benefit before moving forward. The fee charged upon initiating the project is dependent upon the size and scope of the project.

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Advocates For Savings / Thomas J. Tysl / 1701 W. Northwest Hwy Grapevine, Texas 76051

817.404.9011 / Fax 817.224.2924 / [email protected]