WHAT ARE R&D TAX CREDITS?
The R&D Tax Credit can provide an immediate source of cash as well as significant reductions to current and future years’ federal and state tax liabilities.
It may not be well-known, but countless concrete manufacturers are eligible for these federal and state tax credits and are not aware of it.
We work closely with precast and concrete masonry companies, and find them to be very innovative. Examples of precast manufacturing activities that qualify include:
- Designing and developing a concrete water culvert comprised of transportable and easy to assemble concrete components.
- Designing and developing a complex concrete component that can be repeatably produced in large quantities.
- Developing and testing an alternative concrete formulation for use in a special purpose application.
- Designing and Developing a tooling fixture and a methodology for cutting an intricately-shaped hole in a precast concrete component.
The federal R&D Tax Credit was introduced originally in 1981 and was intended to incentive companies to develop new and improved products and processes.
Now there are approximately 40 states that offer their own R&D Tax Credits in addition to those offered by the federal government.
The R&D tax credits are eligible for a variety of industries and include, but are not limited to:
- Manufacturing (almost any sector)
- Engineering (mechanical, electrical, civil)
- Agriculture (field, greenhouse, irrigation)
- Food & Beverage processors
- Contract Manufacturers
- Biotechnology and Pharmaceutical
- Life Science
- Software Developers
- Companies with eCommerce sites
- Technology companies
- Web or Cloud based businesses
Companies That Would Most Likely Benefit:
- Gross sales generally greater than $3,000,000, or
- Annual payroll generally greater than $1,000,000