Life is sink or swim, and business owners and executives know that the key to smooth sailing success is constantly developing new ways to achieve goals. The government seeks to promote this spirit of innovation for the good of the country and to help businesses by offering valuable tax incentives. These extremely lucrative tax benefits are intended to encourage innovation, job creation, trade, and environmentally friendly practices. However, many small and mid-size businesses aren't taking advantage of them.
According to a recent article in The Wall Street Journal, “out of 1.78 million corporate tax returns (filed) in the U.S., only about 20,000 claimed any of the… business tax credits in the code, according to IRS estimates.”
Tens of billions of dollars – that Congress wants businesses to use – go unclaimed every year, with the irony that many of the qualifying activities are already being performed by these companies.
One of the most valuable incentives is the Research and Development (R&D) credit. Over the years, this credit has been vastly expanded to include many industries such as manufacturing (from food to widgets), architecture, engineering, construction, and software development to name a few.
Businesses no longer need to be creating or developing something new to the world or the industry, only new to their company.
As former U.S. Congressman (New York), and current alliantgroup Director, Rick Lazio points out, “R&D is not just for patents, emerging technologies, and labs filled with PhDs in white coats. From producing a new product to enhancing business processes, there are so many dimensions that will allow businesses to be eligible for this important incentive.”
There are other valuable tax incentives available for energy-efficient design and construction of commercial real estate, government buildings, as well as certain housing developments.
Significant savings are available not only to property owners, but also to architects, engineers, and other firms involved in the sustainable construction. Further credits are available for exporting certain products and services. In addition, many states also offer robust tax incentives for various activities that many businesses already perform.
So if these credits are so valuable, and are available for activities many companies are already doing, and the government wants companies to use them, why do so many choose not to take advantage of them? The most common reason is that businesses believe they don't qualify, and this is so often not the case. Many businesses also believe the process of obtaining tax credits and deductions is too complicated. For these reasons, alliantgroup was formed – to educate to small and mid-size businesses on available incentives so companies are not over-paying their taxes. Our extensive team of tax lawyers, accountants, industry specialists, and D.C. insiders, such as the former IRS Commissioner who is our Vice Chairman, help businesses identify and claim these valuable savings.
alliantgroup has secured billions of dollars in incentives for companies, helping to vastly improve their bottom line, allowing businesses to to expand their enterprises, and for a few, keep them from going under. The business world is sink or swim; let alliantgroup throw your company a financial life vest!
alliantgroup Success Stories
Architecture & Engineering Firm Annual Revenue: $7.9 million Result: $270,000 in state credits
Package Manufacturer Annual Revenue: $41 million Result: $1.1 million in state and federal credits.
alliantgroup is the leading specialty tax service provider, working with more than 3,000 CPA firms and their clients to help businesses claim available tax incentives such as the R&D credit, aimed at creating jobs and spurring innovation.