TAX CREDITS & INCENTIVES

Most individuals are not aware of the many tax credits and incentives offered by the Government. However, our tax experts can help businesses take advantage of any applicable tax credits and incentives that are available. Some of these include:

• R&D tax credit 

• Cost segregation study 

• Manufacturing tax credits

• Energy tax credits

• Section 179 deduction and bonus depreciation

R&D tax credit

The Federal Research Credit, commonly referred to as the R&D credit, was first enacted by Congress in 1981. Businesses of all sizes, particularly in the technology, healthcare, manufacturing and construction industries, can qualify. However, many companies think the R&D tax credit doesn’t apply to them. But, if you’re developing a new or improved product, creating software, engaging in engineering, architecture, scientific or technical services, you may qualify.

Cost segregation study

If your real estate holdings represent a significant capital investment, a cost segregation study can help you generate cash flow savings and maximize your investment return. Through cost segregation, we can maximize your real property’s financial return by carving out shorter-lived assets (qualifying for five, seven or 15 year write-off periods) that are sometimes imbedded in a building’s construction or acquisition costs and thus generally depreciated over 39 years. This type of asset reclassification is generally most effective for properties valued over $1 million. For example, by reclassifying a million dollars, the increased cash flow from tax savings is about $230,000.
 



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