19 November 2007
19 November 2007
Affluent Consulting of Odessa, FL is focusing its expertise in helping companies take full advantage of federal and state research and development (R&D) tax credits on the U.S. composites industry.
After Affluent Consulting personnel attended the recent COMPOSITES & POLYCON show in Tampa, FL, the company recognized the potential tax savings for which many composites businesses are eligible, but may be failing to take advantage of. Affluent works with companies such as composites fabricators and suppliers to the industry to help them recover research and development expenditures. “Through our diligence and commitment, we find and document costs that are very often missed by many CPA firms,” said Stephfan Nurse of Affluent Consulting.
Through intimate knowledge of the Internal Revenue Code and careful examination of treatises, case law, regulations, and rulings, Affluent Consulting professionals will help U.S. composites industry companies uncover and capture all qualifying research.
The Federal R&D Tax Credit Program has been in existence since 1981, but was utilized by only the most technologically sophisticated companies until 2001. That year, U.S. tax laws were redefined to create lucrative new incentives for companies who continued to innovate, allowing a much greater number of companies to qualify for the R&D tax credit.
Nurse says the roadblocks to claiming these R&D tax credits are lack of awareness and the time required to document a company’s eligibility for them. “Many companies fail to take advantage of the R&D tax credit because of ambiguous and difficult to interpret statutory and regulatory descriptions of what R&D is,” he explains. “In the tax world, R&D is defined much more broadly than in the world of science. Qualifying research includes much more than just new product development. Expenditures taken to improve existing products as well as to develop or improve processes also qualify. Basically, a company’s day to day operations may qualify them for this benefit.”
Nurse points out that fabricators and suppliers should also note that typical R&D Tax Credit studies Affluent Consulting performs are retroactive for up to four tax years, in accordance with U.S. tax laws. “Because our studies are retroactive for multiple years, they can result in a tax credit for our clients in excess of six figures,” Nurse says.