Form 6765: Understand the Section G changes and why it is important to be informed
The updated version of FORM 6765 and its instructions are available from the IRS. Key Takeaways Taxpayers must report the number of business components generating QREs and the total amount of wages paid to executives included in the calculation of the credit. Taxpayers must provide information for their QREs and Business Component. The new Section…
Accounting for R&D Tax Credits
Receiving a significant R&D tax credit refund can be exciting, but figuring out how to properly account for it in your financial records may feel overwhelming. You might be wondering: where does this refund go in your books? Should you apply it directly to payroll taxes or create a separate account? These are important questions,…
Guide to R&D Tax Credits for Architects
Before May 2023, R&D tax credits were largely out of reach for architecture firms. The IRS had strict criteria that excluded many activities common to architects, such as designing, testing, and improving building systems. However, a landmark ruling in May 2023 and subsequent changes in tax regulations have opened the door for architectural firms to…
Guide to R&D Tax Credits for Construction Industry
When it comes to innovation, the construction industry is often overlooked. Many assume that research and development (R&D) tax credits are only available to tech companies or large corporations. This misconception leads many construction firms to miss a significant opportunity to cut costs and invest in improvements. R&D tax credits are made to reward businesses…
How to Handle an R&D Tax Credit Audit
Dealing with an R&D tax credit audit can feel stressful, especially if you’re unfamiliar with the process. Feeling concerned about the possible audit after a successful R&D tax credit claim is normal. You should know that audits are quite rare, but even if you are “lucky enough” to have them, good preparation will let you…
US Election: How the Upcoming Decision Could shape Tax Planning
Key Takeaways: The upcoming US election could significantly alter the tax landscape, particularly with provisions of the Tax Cuts and Jobs Act (TCJA) set to expire. Democrats are seeking to extend provisions to prevent tax increases for individuals with incomes under $400,000 and small businesses, while Republicans are supporting the continuation of the doubled standard…
How to Take Care of Your R&D Tax Credit Documentation
Having proper documentation is critical when you are applying for R&D tax credits. Without the right records, you may face issues like: Delays Audits Cancellation of your credit claim. The IRS requires your business to prove that your research activities qualify. In short, this means that your documentation needs to be thorough and accurate. Besides…
From Concept to Credit: Optimizing R&D Investments for American Businesses
Key Takeaways: Clearly define your R&D goals to ensure a well-executed process. Research and understand all available investment options and benefits to maximize returns. Stay updated on changes to R&D benefits, such as the R&D Tax Credit, to avoid errors when claiming benefits. Invest in hiring and retaining skilled employees, providing them with the necessary…
R&D in MRO and Aviation
Main Takeaways: Aviation Industry Overview: The industry is growing due to air travel and investment demand. The Maintenance, Repair, and Overhaul (MRO) industry is expected to reach $104 billion by 2024, with projected annual growth of 1.8% through 2034, reaching $124 billion. R&D in Aviation: Focus on reducing environmental impact through hybrid power, hydrogen engines,…
R&D: U.S. Trends and International Comparisons
Research and Development (R&D) is a key element of the U.S economy, being enforced by many industries, from technology to healthcare, in both the public and private sectors. R&D refers to creative and systematic work that aims to increase state knowledge and is divided into three categories: basic research, applied research, and experimental development. This…
