Improving bottom lines through R&E tax credits

Tim Finerty and Sarah Russell lead Clayton & McKervey’s systems integrators practice, providing closely held businesses with high-level tax, accounting and consulting services. Their experience helps domestic business owners maximize profits and, where needed, navigate the tax and accounting issues resulting from doing business internationally. Clayton & McKervey works exclusively with entrepreneurs and understands the many stages of business operations, from start-up through all phases of middle-market growth.

benefits & savings

The Research and Experimentation (R&E) tax credit is an incentive providing tax benefits for companies investing in innovation, process improvement, and the elimination of design uncertainties related to many business components. There is a great savings opportunity for manufacturers, systems integrators, and the entire automation industry to explore

activities & expenditures

Generally, R&E tax credits may apply to companies that perform, or hire outside contractors or consultants to perform, qualified activities which include:

• • Research expenditures which may be treated as deductible expenses under the provisions of the tax code

• • Research undertaken for the purpose of discovering information which is technological in nature and, the application of which, is intended to be useful in the development of new or improved business component

• Substantially all the activities that constitute elements of a process of experimentation for a functional purpose