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.

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 < or = $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 < $5M
  • No gross receipts for any taxable year in the five taxable year period preceding the tax year

AREAS OF OPPORTUNITY

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

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

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FGMK ENGAGEMENT PROCESS