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PROFESSIONAL, SCIENTIFIC & TECHNICAL SERVICES

This category focuses predominately on biotechnology, physical engineering, and life sciences, among a few other advanced fields.   These companies see research itself as an ‘industry,' and are typically at the leading edge of scientific and technical advances.  These firms are judged by how well and how quickly they generate technical results, and there is rigorous competition to service ideal clients.  Because of their nature, these firms benefit enormously from the R&D Credit, and showcase its most substantial benefits:

  • Patent Safe Harbor

    The highest distinction for research activity, any / all activity associated with developing a utility patent is automatically qualified under a ‘safe harbor,' and immune to challenge.

  • University Research

    Research done in conjunction with an accredited university can take advantage of special rules, typically increasing the R&D Credit rate.

  • Prototyping and support

    Generations of new specialists are joining this space, focusing on supporting other design and development efforts.

  • Joint Ventures

    Major industries often organize a group of experts to resolve one of the more perplexing or rigid obstacles encountered by them all.

Case Study

The "Funded" Exception

Funding: The most critical challenge here was the "funded research" exception. When a company is contracted for services, that company, or both companies, can lose the credit. After a detailed analysis, virtually all of the projects were sustained.

Architecture / Engineering

Few industries have undergone the change that architecture / engineering firms have in the last few decades. The conventional manner of planning and execution has been almost completely supplanted by computer enhanced systems and digital aids. Architecture Co. is an architectural design firm attempting to reduce the time and expense of building physical models. They have great expertise in Computer Aided Design ("CAD"), and begin to investigate 3D printing options. They designed, fabricated, and purchased components, completing a series of 3D printers that met their technical needs. These efforts generated a handsome credit.

Credit Estimator

Credit Estimator
* Industry Averages are historical IRS averages, representative of actual results compiled by the IRS (based industry NAICS code.)  Estimates of QREs and credits are approximations, and actual results will vary based on actual client costs and qualifications.

Disclaimer

This is an estimation only and should not be used on your taxes.  All conclusions involved in this calculation are based on the accuracy of the information provided by the end user.  This calculation utilizes historic information and statistical analysis to determine an industry average combined with a mathematically derived constant for the calculation of State and Federal Benefits.  InnovaTAX cannot and will not warranty the results of this estimation and any party using the estimated figure in place of a genuine calculation does so at its own harm and with full warning from EEPB InnovaTAX that such action is improper.  Further, the estimator developed by InnovaTAX is the intellectual property of InnovaTAX and cannot be used in any other manner than on this website or by InnovaTAX employees.  Due to the fact that the information contained within the calculator is based on industry averages, the results will vary from situation to situation and might be above or below the stated figure.  Consult your tax advisor or EEPB InnovaTAX for further information.

Definitions

The information used for the calculation of this credit is based on the Internal Revenue Code and Regulations.  EEPB InnovaTAX gathered information from State legislatures and taxing authorities for each state and relied upon the information provided by the state to develop this estimator.  The definitions of activities that qualify for tax credit are based on the definitions set out in the Internal Revenue Code and by each state authority.

EEPB InnovaTAX maintains this website on a regular basis and makes its best effort to update the estimator but does not warrant the calculations involved in the estimator to contain current law at all times.

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2950 North Loop West Suite 1200 • Houston, Texas 77092 • Phone: 713.622.0016

EEPB InnovaTax, LLC is a State of Texas registered tax adviser located in Houston, TX.

EEPB InnovaTax specializes in Research and Development income tax consultation; Tax advisory services; Tax and taxation planning advice, information and consultancy services; and Tax consultation.

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