Research & Development

The United States Federal Credit for Increasing Research Activities has been underutilized.  With the recent expanded application of this credit, taxpayers are shocked to discover that the R&D credit in not only for high-tech, biotechnology and software companies.  Some of the best candidates for the R&D credit include construction, manufacturing, tool and die, agriculture, software development, biotechnology, structural engineering, food processing and pharmaceutical. 

 To qualify for the R&D credit, the activities must meet four qualifications:

1.  the activity must be related to the development or improvement of a business component (product or process),

2.  there must be some uncertainty as to the method, capability or design of the business component,

3.  there must be a process of experimentation to overcome the uncertainty and;

4.  the activities must relate to one of the hard sciences (e.g. engineering, chemistry, physics, biology, biotechnology, computer science, etc)

While you expand your product line or improve your internal processes, you could help fund these efforts with government credits.  We have assisted many clients in the construction and engineering industries realize large cash credits for their qualifying research activities.  Regulations allow taxpayers to claim the R&D credit for all open years (typically three years) so the potential cash refund could be substantial.

Please contact us to discuss your Company's activities and how they potentially qualify for this beneficial credit.

Kenneth Kirkland, CPA, MST
E-Mail: kkirkland@kafgroup.com
Phone 781-817-1104