Increase cash flow by minimizing tax obligations
Federal and state governments offer a number of tax credits and incentives. Clayton & McKervey’s team of tax professionals can help identify where they may be utilized to reduce tax liabilities, and increase overall cash flow.
Research & Experimentation (R&E) Tax Credit
The R&E tax credit (commonly known as research and development) is an incentive providing benefits for companies investing in innovation, process improvement, and the elimination of design uncertainties related to many business components.
Domestic Production Activity Deduction (DPAD)
DPAD is a tax deduction related to domestic production gross receipts, attributable to domestic production activities. Essentially, it is a deduction equal to 9% of the lesser: taxpayer’s taxable income or the qualified production activities income.
Interest Charge – Domestic International Sales Corporation (IC-DISC)
The IC-DISC is a tax deferral tool that can be used by U.S. companies exporting domestically produced goods. It is highly recommended that companies with a moderate amount of export sales explore the generous 15.8 percent tax savings the IC-DISC may offer.
Cost segregation is a tax savings tool allowing companies and individuals who have constructed, purchased, or remodeled business property, to increase cash flow by accelerating depreciation deductions, and deferring federal and state income taxes.
Many areas implement economic development incentives to promote growth. Governments use these tactics to attract new companies, retain existing companies, and create new jobs. Identifying location incentives can be beneficial when aligned with company goals.