TAX CREDIT EVALUATION SERVICES
Research & Development Tax Credits Studies & Filings
Schedule a free consultation to find out if your company qualifies for R & D tax credits (Federal & State) for the present and past years.
If you do, we’ll be happy to talk through next steps to get your R&D tax credit study completed in a timely, painless way.
Your Initial Consultation ExplainedSchedule Your Research & Development Tax Credit Consultation
Our initial consultations are free of charge. In fact, we only charge for our services once we quantify your qualified credits at both state and federal level.
An initial call with us is about:
- Helping you understand whether your company qualifies or not
- Giving you an understanding of the process and how we work with your team and your CPA to document all the qualified activity
- Talking through the potential ROI of an R&D tax credit study and making the filings
Let’s find out if a study makes sense together. Please choose a convenient time on my calendar:
No-Risk
Our evaluations are always 100% free, and we only invoice for our services out of credits found. If we don’t find you qualify for the credits we identify, you don’t have a bill.
On-Demand
If we identify credits/incentives for which you qualify, we partner with your primary accounting firm to complete the necessary studies and filings as part of your broader tax strategy.
Entrepreneurs at Heart
We love what we do because our days are filled helping innovative & entrepreneurial firms free up capital for growth via the programs that help keep our country on track for a bright future.
DOWNLOAD THE WHITE PAPER
Complex Tax Credit & Incentive Matters: What Your Business Needs to Know
R &D Tax Credit Study Testimonials:
Jordan and his team at CTA comes highly recommended from Bravado Pharmaceuticals.
CTA works quickly and thoroughly providing understandable and friendly service. The entire staff is helpful, approachable, and knowledgeable and made the process painless.
Molly Berberich, Director – Bravado Pharmaceuticals
Tampa Bay, Florida
Jordan and his staff at CTA did an incredible job.
Their experience, knowledge, and efficiency make the process seamless.
I would highly recommend Jordan and his team.
Brett Buchanan, CFO – Bulk Conveyors, Inc.
Wichita, Kanas
Jordan and his team have proven to be very knowledgeable and reliable.
They have provided R&D tax credit studies to several of my clients and they all were impressed with the team and happy with the savings.
Jay Miller, CPA, – Suplee, Shea, Cramer, & Miller PA
Sarasota, Florida
Our firm decided to use our local accounting firm for the R&D credits; however, it became apparent that they did not understand how the law was changed in 2016 enabling a Civil Engineering firm such as ours the full utilization of these tax credits. Also, they did not back up their work in their contract leaving our firm the full cost burden to defend ourselves against the IRS if audited. Unlike CTA they did not have an engineer on staff that completely understand engineering contracts leaving a non-expert such as myself deciphering the contracts for them. We are glad our R&D credits are back in the hands of CTA.
Brian K. Converse, President & GM
Illinois (9 Offices)
The Problem:
The US tax code is so broad and complex that no primary firm can stay current on all aspects, AND companies end up paying more taxes than they should when nuanced & complex credits/incentives are not attained.
Increase Profitability and Finance Growth with R & D Tax Credits
Since its introduction in 1981, companies have used the Federal Research & Development Tax Credit to save billions of dollars.
In addition to Federal R & D Tax Credits, many states also offer credits that follow the same guidelines as the federal credit. Because of this, the combined value of the R&D tax credit calculation for an optimized firm provides an excellent means to increase profitability and fund strategic growth initiatives.
Purpose of R&D Tax Credits
The purpose of R & D Tax Credits at both federal and state level is to help companies around the nation, and of all sizes, underwrite the cost of innovation. Our country has a vested interest in incentivizing the R&D activity that maintains our place as the dominant economy globally.
Although manufacturing, bioscience, software, and technology companies have historically reaped the greatest benefits from these credits, R&D tax credit example recipients include any company that designs, develops, or improves a product or process may be eligible for this tax credit. This includes, but is not limited to, engineering, architecture, and construction companies.
Businesses that frequently qualify for Research & Development Tax Credits are often in these industries:
Software Development
Manufacturing
Bioscience
Technology
Engineering
Architecture
Construction
Any other company that designs & develops products or processes likely qualifies. Just ask us about your situation.
Who Qualifies for R&D Tax Credits?
The Research and Development Tax Credit was created in 1981 as an incentive for American innovation and was formalized in December of 2015. Any company that designs, develops, or improves products, processes, techniques, formulas, or software may be eligible.
The terms Research and Development relate to the development of a product or process before commercial production for related U.S. activities.
The Research and Development Tax Credit results in an immediate benefit to a company because it can reduce past, current, and future years’ federal and state tax liability, thereby creating an immediate source of cash.
The credit provides a dollar-for-dollar offset against taxes owed or paid, which differs from a deduction. The credit can be used to offset Alternative Minimum Tax and payroll withholding in certain circumstances. The federal research and development tax credit averages about 6.5% of combined qualified Research and Development labor, contractor labor, and supplies.
The R & D Tax Credit incentivizes certain research activities by reducing a company’s liabilities for spending money on that research. The credit is equal to a certain percentage of a business’ qualified research expense (QRE) in excess of a base amount. Expenses that qualify are more comprehensive than you may think — QREs can include the salaries of employees and supervisors who are conducting research as well as supplies, and even some of the research that is contracted out.
What Is the R & D Tax Credit Four Part Test?
To qualify for Research & Development Tax Credits, you’ll want to review this eligibility framework.
- Elimination of Uncertainty: You must demonstrate that you’ve attempted to eliminate uncertainty about the development or improvement of a product or process. In other words, something that has been changed solely for aesthetic purposes would not qualify.
- Process of Experimentation: You must demonstrate — through modeling, simulation, systematic trial and error or other methods — that you’ve evaluated alternatives for achieving the desired result.
- Technological in Nature (The Discovering Technological Information Test): The process of experimentation must rely on the hard sciences, such as engineering, physics, chemistry, biology or computer science.
- Qualified Purpose (The Business Component Test): The purpose of the research must be to create a new or improved product or process, resulting in increased performance, function, reliability or quality.
It’s not uncommon for qualified businesses to have read the above and still feel uncertain about whether they qualify. A research and development tax credit consultant on our team will be happy to talk you through this on our initial call.
At Corporate Tax Advisors, we’ve been providing this service to clients and educating the CPA community on R&D tax credits since the company was founded in 2014.
What Is an R & D Tax Credit Study?
As part of our job as an R&D tax credit consultant, we will be happy to confirm with you whether or not you “pass” the 4-part test. Assuming you do, it’s time for the study to commence.
The task is to look at all of your company’s activity and determine what parts of it truly qualify as “r and d” and what does not. You’ll have a project manager who is your point of contact throughout the process while our team of engineers, accountants, and attorneys works through your records.
What qualifies then has to be adequately documented and quantified to ultimately arrive at a final number for the credit.
Keep in mind your study may determine credits are available for both state and federal programs, which are awarded by creating the proper filing in conjunction with your primary CPA.
R & D Tax Credits for Past Years
Many clients are surprised to learn that the R&D Tax Credit for 2022 is still available. Like many of the programs in which our tax credit advisors specialize, both federal and state R & D tax credits missed on past filings can be captured with the right expertise.
Founder & CEO Mike Woeber Talks CTA Culture & How We Partner with Accounting Firms to Ensure Amazing Results for Clients
“I spent 24 years in public accounting…and during that time, I saw a need for very specialized services. Things that you would think a CPA firm would do, but they are not really staffed up for or have the right personnel to do….We want our employees to do two things:
We want them to do a very defendable and solid credit incentive delivered to the client.
And we also want them to be sure the client is happy while we do it.”
Schedule Your Consultation Partner with CTAOur Mission:
To educate and advise our clients of tax incentives in a Collaborative, Timely, and Accurate manner.
Some Representative Examples of Our Research & Development Tax Credit Work
Service: R&D Tax Credit
Industry: Medical Device Manufacturing
Location: Atlanta, GA
Company Size: 400 Employees
Background: The client is a leader in the design and manufacturing of spinal medical devices.
Result: Client was previously taking credit with another provider before CTA spoke with their product engineers and management to determine there was qualifying activity beyond what they were calculating previously. The result was a higher credit for both Federal and Georgia returns.
Service: R&D Tax Credit
Industry: Architecture & Engineering
Location: Las Vegas, NV
Company Size: 250 Employees
Background: One of the largest hotel design firms in the country with offices all over the US.
Result: President was skeptical that an architect would even qualify for something called “R&D Credit.” After meeting with client and their CPA, we explained and outlined all of their qualifying activity. Client was open to capturing previous year credits, and we were able to capture $100k per tax year for a total of $400k in usable tax credits.
Service: R&D Tax Credit
Industry: Engineering
Location: Jacksonville, FL
Company Size: 50 Employees
Background: The client is a multi-discipline civil engineering firm specializing in engineering better communities across Florida.
Result: The client was aware of the R&D tax credit but didn’t feel it was worth the effort. At the urging of industry colleagues, the client investigated the credit, and CTA’s name kept coming up. After seeking CTA’s advice, the firm qualified for the current and two previous years, significantly adding valuable dollars to their bottom line.
Service: R&D Tax Credit
Industry: Engineering/Planning
Location: NC & TX
Company Size: 350 Employees
Background: The client is a full-service civil engineering, land planning, landscape architecture, and geomatics firm.
Result: The risk-sensitive firm had little knowledge of the tax credit and chose not to pursue it to avoid possible IRS audits and exposure. After consulting with CTA, the firm opted to seek the R&D tax credit for the current and two prior years. Not only was the firm not audited, but it immediately received reimbursement from the IRS for the past two qualifying years.
Service: R&D Tax Credit
Industry: Engineering
Location: Boise, ID
Company Size: 30 Employees
Background: The client is a structural engineering and design firm specializing in manufacturing, commercial, and facilities markets.
Result: The client’s leadership team had heard of the R&D tax credit and had previously worked with another consulting firm for over a year to investigate qualifying. With no success, the firm switched to CTA, who collaborated with the client’s CPA to receive R&D tax credits for the current year and the prior two years resulting in a six-figure credit that allowed the engineering firm to renovate its company offices completely.
Professional Recognition
Our firm is recognized as one of the leading specialty tax advisory firms in our industry throughout the nation. By combining our expertise, experience, and the energy of our staff, each client receives close, personal, enthusiastic, and professional attention.
Our high standards, service, and specialized staff make all the difference when comparing CTA to other firms. We make sure that every client is served by the expertise of not only their personal account manager, but our entire firm.
Our Process Pays for Itself:
Step #1: INTRO CALL
Determine Whether You Qualify
You choose a convenient time on our availability calendar for us to ask you some basic questions about your business and determine whether or not you are a candidate for the various incentives in which we specialize.
Step #2: RESEARCH & PREPARATION
Run the Study & Analysis
Working in unison with your team & your primary accounting firm, we gather the requirements and make the calculations that determine the value of the credits or incentives as required by law.
Step #3: COMPLETION
Complete the Filing & Receive the Credit
Once we determine the credits available and have everyone’s approval, we prepare the filings for submission by your firm (along with other filings you/they may be handling) and invoice for our services.
