Companies can achieve thousands of dollars in research tax credits

As tax calculations accumulate, companies are always looking for ways to get tax credits. Two such important tax incentives are the study of tax credits and the 179D energy efficiency tax credit. The first aspect applies to tax incentives to encourage companies to invest in commercial research and development in the United States. On the other hand, the 179D tax credit helps companies see profits in reducing energy consumption. In fact, apart from large companies, companies rarely consider these aspects of tax incentives.

• Incentive research

Based on the tax credit concept of research and development investments that began in the early 1980s, credit has been extended by 14 since then, and the current system will expire in December 2013. The last expansion of the credit system was through the 2012 American Taxpayer Relief Act [ATRA]. Since this is a largely unknown tax credit, many companies, big or small, have failed to take advantage of it.

• Anyone can apply

Many companies believe that they can apply for a tax credit only if they invest in research to develop something new through a recognized research institution. Although most of this fact is true, it is not an absolute fact. Companies that can demonstrate investment research to improve existing products rather than documented through laboratory settings can successfully apply for this credit. Even small businesses can apply because they can display evidence of customer interaction data and invest in analyzing the data.

From manual "fill-in" research to online business research using various CRM system analyses, everyone is eligible for this tax benefit. It also applies to state law, as 38 states have so far studied tax credits, and more states are considering implementing this policy to encourage companies to execute with greater scientific accuracy. Companies that apply their research through smart branding and neuromarketing should also consult with tax experts to assess their eligibility.

• Energy efficiency tax benefits

Similarly, the 179D tax credit for energy efficiency may also be a potential source of tax incentives. These deductions are in compliance with the 2008 "Emergency Economic Stability Law". To meet this requirement, the company needed to significantly reduce [50%] HVAC, building envelopes and indoor lighting energy expenditures from January 2006. Eligible deductions are currently $1.80 per square foot.

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