CHARLESTON, SC – The U.S. offers some of the world's richest research and development (R&D) tax incentives, but many companies are not taking advantage of them and receiving the cash they deserve. SIB Development & Consulting, based in Charleston, SC, explains to businesses locally and nationally that as their pace accelerates and competition increases, they may be more likely to overlook this source of cash because they lack the time, resources or expertise needed to identify and manage R&D tax credit claims.
Resolving misconceptions about R&D is the first step for SIB Development owner, Dan Schneider. He explains to business owners that many taxpayers tend to regard R&D as an activity associated solely with high-tech, biotech and pharmaceutical type companies. But SIB Development has found that many of their clients tend to regard their own efforts to make new, lighter, stronger, less expensive, more reliable products as "just doing their job," when in fact they have been performing R&D qualifying activities.
Before December 2001, the requirements necessary to qualify for the R&D tax credit were rather difficult to obtain. However, in December 2001, the Bush administration issued IRS regulations which made it significantly easier to qualify for the R&D Tax Credit. The new regulations are in harmony with the intent of Congress and are much more taxpayer friendly.
“Even with a CPA on staff, R&D tax incentives cannot be fully optimized without bringing in an outside expert--given the current state of the economy businesses need to explore all avenues of acquiring money,” said Schneider.
