For the Taxpayer

Want to stay ahead of your competitors?
Consider this, over $9,000,000,000 (that’s $9 BILLION) of §41 Research Tax Credits benefits are given out annually. In addition, State Research Tax Credits are available in many states. Total R&D tax credits exceed $16 billion. The Research Tax Credit has been available since 1981 and was extended through the end of 2009 in recent legislation.

Are you getting your share?
Every successful company is potentially eligible for a Research Tax Credit of some amount. This is especially true for companies with increasing revenues and expanding markets.

There is a perception among many business people that only high-tech activities qualify for the R&D tax credits. People in many industries are surprised to discover that much of what they do to keep their businesses profitable and growing also qualifies them for significant tax credit benefits. Opportunity is especially broad for manufacturing operations. Creating new and improved products, developing new processes or improving existing processes, implementing new manufacturing systems and writing software for internal use are just some of the expenses that qualify for the Research Tax Credit. Under current IRS rules, these activities – and many more that are not listed above – can result in substantial Research Tax Credit dollars if they are properly tested and documented.

Another challenge businesses face in obtaining their deserved tax credits is the complexity and illogical nature of the tax credit regulations. Reality is that tax laws are not written by businessmen. Once written and passed by Congress, tax laws are transformed into elaborate tax regulations by the IRS. These regulations are the official interpretation of the law.

Tax advisors that do not specialize in the Research Tax Credit, find it difficult to correctly interpret the regulations and to assist their clients in claiming Research Tax Credits. Frequently, tax advisors mistakenly conclude that clients do not qualify for Research Tax Credits when in fact they do. Consequently companies often lack resources to provide the requisite mechanism for documenting and keeping their deserved tax credits. Historically over 80% of the 16+ billion dollar annual benefit from the Research Tax Credit goes to a few of the nation’s biggest companies with huge legal and accounting resources. This is not what Congress intended.

What should you be getting?
The 20% IRC §41 Research Tax Credit is a dollar-for-dollar credit against taxes owed or taxes paid. A taxpayer can take advantage of the Tax Credit for all its open tax years – these are the three past tax years plus the current year. A business may go beyond this time period if it has former Net Operating Loss years or tax years open by agreement. State rules vary. Unused, tax credits may be carried forward 20 years.

Improving your business operations is always expensive. Tax incentives are available to reduce the cost of innovation. The Miller Group can help you return dollars already budgeted or spent to your bottom line with Federal and State Research Tax Credits. The Miller Group has the extensive experience with tax regulations and the technical understanding of requirements for product development and manufacturing technology essential for achieving durable Research Tax Credit benefits. Full comprehension of the regulations, extensive project experience and conservative methodology produce the fail-safe, self-substantiating tax credit documentation of qualifying activities and expenses to produce durable tax credits for our clients. The combination of technical expertise, knowledge of the IRC regulations and extensive experience completing Research Tax Credit projects ensures that The Miller Group fulfills client needs by obtaining their maximum allowable Research Tax Credit. When appropriate, The Miller Group completes Research Tax Credit projects for low cost, highly competitive fees.

An R&D tax credit is potentially available if your business. To find your potential credit benefit, go to “Do You Qualify”

Remember many common business innovations meet the qualification standards and are eligible for the Research Tax Credit.

Contact RIX Technology – info@rixtechnology.com or 206.855.1700