R&D Credit Assessment, Simplified

1. R&D Credit Assessment, Simplified Research and development include companies that innovate and introduce new products and services. The tax credit is offered to taxpayers who aid in designing, improving the development of processes, techniques, software, and other related items. At times, companies are unaware if they qualify for these tax credits, but assessments can be done with professionals' aid. Of the specialists who are often unaware of their qualifications for this research and development credit, architects don't realize that they are available. In 2017, the Tax Cuts and Jobs Acts (TJCA) was signed. TJCA simplified a set of income tax brackets with lower rates for individuals. Leading to a nearly doubled the standard deduction's size and eliminated the personal exemption of many different itemized deductions. The primary goal of it all was to provide tax relief for

2. middle-income families, simplify the process for individuals, and encourage economic growth. When this occurred, the permanency of research and development credits remained. While doing appropriate research, an assessment can be made to see if you, as an architect, engineer, or contractor, qualify. The benefits of a research and development tax assessment can map out how you can save tens of thousands of dollars in taxes. You can achieve this by increasing your earnings-per-share, create a dollar-for-dollar reduction on your federal and state liability, and by improving your cash flow. Another major benefit of a research and development assessment is that you can receive up to 12-16 cents off federal and state for every qualified dollar. When companies do an assessment of qualifications, they will engage in a four-part test. Resources are also available to educate you and provide you with an understanding of how you can conduct an assessment for your business. The steps of the four-part test are: Elimination of uncertainty. Here you must make an assessment and prove that you've tried to eliminate the uncertainty that the development is for more than aesthetic purposes. Process of experimentation. This step requires you to do research and demonstration that you have evaluated alternatives for achieving the result. Technological in nature, or the "discovering technological information test." Hard sciences must be at work here.

3. Qualified purpose, or the "business component test." The research must show that you have aided in the development of new or improved products, leading to increased performance, function, reliability, or quality.