R&D Tax Credits
Don’t Leave Money on the Table
The R&D Tax Credit is often overlooked by manufacturers due to a misunderstanding of what types of activities qualify for the credit.
IMC helps our manufacturing clients access the Research and Development (R&D) Tax Credit programs through both the federal government and state of Pennsylvania. The R&D Tax Credit program offers the opportunity for eligible companies to get money back from the government.
Money Back Into Your Business
The R&D tax credit encourages U.S. based manufacturers to innovate and invest back into their businesses in order to compete more effectively on a global basis. For companies that have not taken advantage of the R&D tax credit in the past, this can potentially mean the creation of immediate and substantial amounts of cash. In addition, companies can reduce future tax liabilities and improve cash flow.
Imagine a Check in the Mail for Your Tax Credit
Our state program is one of the best in the nation. If you can generate a Pennsylvania State R&D Tax Credit, but cannot immediately use the credits because your company has no current tax liability, you CAN still benefit immediately because the Pennsylvania State R&D Tax Credit can be monetized and sold to another entity that does have a tax liability. IMC can help you make that happen.
MYTH: You have to be a biotech or R&D firm to get R&D Tax Credits.
FACT: Any company doing research and development – whether for themselves or for a customer – can qualify for the R&D Tax Credit program. Manufacturers from machine shops to high tech can qualify.
MYTH: You can only apply for R&D credits if you are developing new products for your own company.
FACT: If you are developing a new product for a customer, that is a qualifying activity for the R&D program. Companies of all kinds, including those making their own products and those that make products for their customers, often mistakenly believe they don’t have R&D taking place in their business. Many of the day-to-day activities taking place in the “job shop” environment can qualify for the R&D tax credit as well.
How Does This Work?
The basic steps for the R&D process include:
Step 1 – You and your IMC Business Advisor will discuss some of the basics on qualifying activity.
Step 2 – We will schedule a call with our strategic R&D Tax Credit partner to discuss whether or not your company can receive a meaningful credit.
Step 3 – Should there be good opportunity, an in-depth evaluation of the potential tax credit will be completed with the support of key members of your staff.
Step 4 – Applications will be completed for federal and state credits.
Step 5 – You will receive credits, and if eligible, will have an opportunity to sell your state credits for cash.
Contact your IMC Business Advisor today to get money back from the government for your research and development efforts.