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RESEARCH & DEVELOPMENT TAX CREDIT

The R&D Tax Credit incentivizes taxpayers who design, develop or improve products, processes, techniques, formulas or software to promote research and spur job growth in the United States.

So, why haven't you been utilizing the Credit? Simple, the R&D credit is known to be a complex credit with extensive variables. If you are not using a specialist for this credit, the amount of your credit and its validity can vary greatly, as well as the documentation to support the Qualified Research Expenses (QREs).

  • Increasing Credit

    Over expenditures increased 966% since 1970 and 195% since 2000

  • Permanent

    The R&D Credit is now permanent and has structural improvements.

  • Wide Scope

    The credit benefits a huge range of items, including products, processes, techniques, software, formulas, inventions, etc.

  • Low Threshold

    The subjective test is low, enabling most companies to qualify. See Four Part Test.

R&D Credit Benefits

Pre-Modeled: InnovaTax models the credit before beginning.

Advantages: Perfecting a credit is far easier than creating one from scratch.

No Questionnaires: We develop the credit from existing material, we do not require employees to fill massive forms.

Powerful: Tax credits are the most powerful tax tools, reducing tax dollar-for-dollar with no ceiling.

Dynamic: Credits do not just impact one year, they can be carried back one year and forward twenty.

Potent: The R&D Credit reduces tax up to 9.1% net (14% Gross) of costs, and states increase that further, frequently as much as 50%, though variable.

More Flexible: The R&D Credit can now take tax to zero (companies under $50 mil/year).

Small Business Friendly: For startups, the credit can now be applied to payroll tax up to $250K (under $5 mil/year).

The Four Part Test §41

  • Business Component

    The business component is that Product, Process, Formula, Invention, or Technique that is sold or leased. The work on a business component must be developed for a permitted purpose such as to increase reliability, functionality, performance, or quality.

  • Technological

    The activity performed must rely on the principles of Physical or Biological Science, Engineering or Computer Science.

  • Process of Experimentation

    Evaluate process capable of identifying and evaluating more than one alternative to achieve a result. This may include modeling, simulation, or a systematic trial and error methodology.

  • Elimination of Uncertainty (§174)

    The activity must be intended to discover information to eliminate uncertainty concerning the capability, method, or ultimate design for developing or improving a product or process.

R&D Credit System

Automatic

Patterns: Identifying key criteria exposes qualified activity.

Flexible: Diverse technical / accounting documents can be integrated.

Repeated: Once developed, the system will continually generate answer.

Intelligent

Interface: Customizable Graphic User Interface (GUI).

Tailored: Each client has a website tailored to their specific R&D Credit.

Powerful: Simple but effective tools capable of capturing and integrating millions of lines of data.

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Houston, Texas 77092
Phone: 713-622-0016

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.

EEPB InnovaTax, LLC. - Not A CPA FIRM

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