Research And Development Tax Credit

The tax definition of Research and Development (R&D) encompasses much more than “white lab coat” activities. The R&D tax credit is now a permanent incentive for companies that conduct qualified research and development activities in the US. FGMK will help you identify your company’s qualified R&D activities and maximize your R&D tax credit, allowing you to reduce your federal and state tax burdens, and lower the after-tax cost of conducting R&D.

FGMK specialists use their extensive knowledge of the federal and state laws and their application to maximize and substantiate the R&D tax credit benefits. We recognize the importance of providing value while minimizing the impact on your company’s daily operations.

Daniel F. Laughlin

312.638.2916

shape shape shape shape shape

FGMK specialists use their extensive knowledge of the federal and state laws and their application to maximize and substantiate the R&D tax credit benefits.

shape shape shape shape shape
Background

R&D CREDIT VALUE

FGMK analyzes your company’s tax profile in order to maximize the R&D credit benefit and its utilization.

Credit is now permanent:

  • Credit provides dollar for dollar tax reduction
  • Each qualified dollar produces approximately five cents of federal credit
  • Some states also allow R&D credit

Eligible Small Business can use the credit against AMT

  • Average annual gross receipts of prior three tax years less than or equal to $50M
  • Available to corporations whose stock is not publicly traded, partnerships, and sole proprietorships

Qualified Small Business can use the credit against Payroll Tax:

  • Tax year gross receipts less than $5M
  • No gross receipts for any taxable year preceding the five taxable year period ending with such taxable year

AREAS OF OPPORTUNITY

FGMK analyzes your company’s activities to identify qualified business components and associated expenditures.

  • Alternative material analysis
  • Applications development
  • Continuous process improvements and automation
  • Mobile development
  • New process layout/machinery customization and integration
  • New or improved product design
  • Prototype development
  • System architecture and design
  • Tooling, dies, fixtures design and development

FGMK ENGAGEMENT PROCESS

FGMK designs its engagement process to align with your company’s industry, management goals, and tax profile.

Find
  • Identify credit opportunity
  • Analyze utilization
Generate
  • Calculate qualified expenditures
  • Calculate federal and state credits
Memorialize
  • Document methodology
  • Document qualified activities
Keep
  • Provide comprehensive deliverable
  • Available for audit support

Stay current with us

Sign up for our newsletter to receive the latest in thought leadership, webinars, news, and resources.

background