CONGRESS AGREES TO RETURN THE R&D TAX CREDIT BACK TO FULL STRENGTH
The House Ways and Means Committee recently passed a bill to fix 174 amortization, making the R&D credit more lucrative for businesses. Claiming the credit now can amount to six to seven figures of benefit.
If your company does any of the following, your business likely qualifies for the R&D credit:
- Designing and developing schematics
- Performing calculations to test design changes
- Improving designs to meet regulatory requirements
DOWNLOADABLE RESOURCE
The Fate of R&D Tax Credit
ERC | The Fate of ERC
Contact us to receive more information about the Employee Retention Credit
Importance of
R&D Tax Credit
The R&D Tax Credit was introduced in 1981 to increase technical jobs in America by encouraging businesses to invest in innovation. It is now the most powerful permanent tax credit available. As competition within the American marketplace continues to intensify, companies need to utilize every resource they can. This credit intends to support American innovators so they can reallocate funds back into their businesses to help with the following:
- Retaining and attracting more technical talent
- Growth strategy
- Remaining competitive
R&D Tax Credit 5 Myths and Misunderstandings
Unfortunately, only one out of twenty small- to medium-sized companies eligible for this credit take advantage of it. Here are some of the myths that hold them back:
- The tax credit is only for companies that invent something new
- This benefit is for businesses with research labs
- The credit won’t help me with my state taxes or bottom line
- It’s too good to be true
- There will be tax reform, and the R&D credit will go away
Success Stories from Our Clients
Electrical Engineering Firm
ANNUAL REVENUE:
$44 Million
TOTAL CREDITS EARNED:
$240,000
Environmental Engineering Firm
ANNUAL REVENUE:
$21 Million
TOTAL CREDITS EARNED:
$524,000
Structural Engineering Firm
ANNUAL REVENUE:
$71 Million
TOTAL CREDITS EARNED:
$650,000
Civil Engineering Firm
ANNUAL REVENUE:
$50 Million
TOTAL CREDITS EARNED:
$800,000
Multi-Disciplined Engineering Firm
ANNUAL REVENUE:
$65 Million
TOTAL CREDITS EARNED:
$1,100,000
Mechanical Engineering Firm
ANNUAL REVENUE:
$20 Million
TOTAL CREDITS EARNED:
$239,000
Our Process
1.
A risk-free, no-cost assessment
2.
Qualifying research projects
3.
Quantifying associated research expenditures
4.
Calculation of credit and drafting of substantiation
Why alliantgroup?
We are the leading experts in tax credits and incentives. Since 2002, we have helped U.S. businesses grow their operations and stay ahead of the competition. To date, we have delivered billions in refunds to over 27,000 businesses.
800+ Industry Experts
Our professionals know your business inside and out and know what qualifies to ensure the most lucrative refund. No other firm offers professionals versed in your industry.
Four Former IRS and Division Commissioners
Our former commissioners are the preeminent experts on IRS policy and ensure our practices and procedures align with the newest guidance. No other firm offers this level
of oversight.
Former Legislators
Our former policymakers understand the intent of tax law and why they apply to your business. As part of our team, they advocate for our clients and help them take advantage of federal funds. No other firm understands tax law to this extent.
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R&D | Providers Checklist
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Schedule a free consultation with our team of experts.
We’ll discuss your eligibility and help estimate your potential
tax benefit.
How Engineering Companies Qualify for R&D
Get Refunds for Solving
Everyday Problems
Here are a few activities that qualify businesses in the ENGINEERING sector:
- Creating designs for buildings, bridges, roadways and other types of infrastructure;
- Designing and developing schematics;
- Performing evaluations and system tests to ensure optimal functionality;
- Performing calculations to support design determinations; and
- Adapting designs to meet regulatory requirements.
Activities mentioned can qualify you for lucrative incentives and substantial tax savings in the form of Section 41 credits.
Keep reading to learn about the biggest permanent tax break available to the engineering industry and how you can claim it while filing taxes.
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R&D | Service Page / Contact-Us
Contact us to receive more information about the R&D Tax Credit.
Real Results from Engineering Firms
ELECTRICAL ENGINEERING FIRM
Annual Revenue: $44 MM
Received: $240,000 credits
ENVIRONMENTAL ENGINEERING FIRM
Annual Revenue: $21 MM
Received: $524,000 credits
STRUCTURAL ENGINEERING FIRM
Annual Revenue: $71 MM
Received: $650,000 credits
How the R&D Tax Credit Helps Engineering Firms
The R&D Tax Credit remains in place as one of the most valuable incentives available for the benefit of engineering firms. As new problems are tackled, and as firms adapt to the new landscape, the innovations brought forward by engineers qualify for the R&D Tax Credit. Engineering firms across America are being refunded with these lucrative tax credits for their efforts toward improving the quality of services, processes, and products.
How the R&D Tax Credit can Offset Supply Chain Disruptions
The global events in the past two years have affected many industries across the U.S., including engineering firms. Many firms faced disruptions, like material shortages, project delays, and extra labor costs. This is where the R&D Tax Credit can play a crucial role by helping engineering firms leverage federal incentives to stay ahead. Engineering firms can use this permanent incentive to invest in new technology, optimize labor costs, retain talent, accelerate growth, and increase competitiveness in the industry.
WHITEPAPER DOWNLOAD
R&D Tax Credit: Driving Innovation and Job Creation
R&D | 5 Myths Dispelled Whitepaper Download (Software & Tech)
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Hear from our clients
I decided to partner with alliantgroup which resulted in an incredibly positive experience. I felt that their professionals understood my business and I was confident that alliantgroup was working in my company’s best interest. The outcome of the R&D Tax Credit was certainly worth my time, and I would highly recommend alliantgroup to anyone interested in undertaking the R&D Tax Credit.
ENGINEERING FIRM, IN
Every stage from the sales process to the final numbers has been well-approached and professional. We were always kept in the loop, always knew the schedule and were aware of our place within the timeline. The coordinated effort your team made to hand-off information to each other ensured that someone was always facilitating our progress. From our experience, I can refer to your services as “exemplary”.
ENGINEERING FIRM, AZ
Calculate Your R&D Tax Credit
In 2021 alone, alliantgroup delivered over $2.3 billion in credits and incentives to over 14,000 businesses. And we do not want to stop here without helping you. Let our experts research and provide information that you need to understand how this credit can genuinely benefit your business
We have created a quiz to help you get a head start on estimating your credit.
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