The U.S. offers some of the world’s richest R&D tax incentives, but chances are you’re not taking advantage of them and getting the cash you deserve. As the pace of your business accelerates and competition increases, you may be more likely to overlook this source of cash because you lack the time, resources or expertise needed to identify and manage R&D tax credit claims.

Prior to December 2001, the requirements necessary to qualify for the R&D tax credit were rather difficult to obtain. However, in December 2001, the Bush administration issued IRS regulations which facilitated a company's ability to qualify for the R&D Tax Credit.

The new regulations are in harmony with the intent of Congress and are much more taxpayer friendly. They reflect a profound change in the position of the IRS. The new regulations make it:

1. Easier for a broader array of companies to qualify their activities as R&D
2. They provide greater flexibility in certain recordkeeping requirements

Many taxpayers tend to regard "R&D" as an activity associated solely with high-tech, biotechnology and pharmaceutical type companies. We have found many of our clients tend to regard their own efforts to make new, lighter, stronger, cheaper, more reliable products, or to make more precise, more economical and more versatile processes as "just doing my job," when in fact they have been performing R&D qualifying activities all along.

If your Company is involved in any of the following activities, you may be able to claim the R&D tax credit:

• Manufacture products
• Develop new, improved, or more reliable products / processes / formulas / techniques
• Develop prototypes or models (including computer generated models)
• Design tools, jigs, molds, and dies
• Develop or apply for patents
• Certification testing
• Tested new concepts
• Development of new technology
• Tried new materials
• Develop or improve production / manufacturing processes
• Develop, implement or upgrade systems and / or software
• Develop production control software
• Improve or build new manufacturing facilities
• Automate internal processes
• Pay outside consultants / contractors to do any of the above stated activities