R&D Tax Credits
The R&D tax credit offers innovative businesses the opportunity to save money and generate cash to improve and expand operations, products and services. Taxpayers may qualify for benefits from multiple tax years (current and prior) to the extent they are developing new or improved products, processes (including manufacturing process improvements) or software designs. These benefits include:
- Incremental tax credit requiring a review of current year qualified research expenses (QREs) as well as prior year activities.
- C corporations, S corporations, LLCs and partnerships can take advantage.
- Credit benefits average between 8% to 14% of qualified wages, supply costs and contract research costs.
- Cloud platform costs that support QRE activities may count as expenditures incurred during the R&D process (i.e., Amazon Web Services, Microsoft Azure, Google Cloud Products).
- Many states offer a variety of additional refundable incentives for R&D activities.
- Tax credits provide a dollar-for-dollar reduction in tax liability.
- Start-up companies can offset up to $500,000 of payroll taxes.
- Minimize Section 174 capitalization requirements while maximizing credit benefits.
Energy Tax Credits & Incentives
Cherry Bekaert’s Energy Tax Credits & Incentives team will help you identify and maximize tax credits your business may qualify for. We assess your organization’s eligibility to receive business tax credits and incentives so that you are not leaving money on the table.
The Inflation Reduction Act (IRA) includes a range of energy tax credits designed to encourage transitioning to clean energy production, advanced manufacturing, adoption of clean vehicles (CVs) and reduced greenhouse gas emissions. Our team can investigate how the following incentives may apply to your business, or how you can sell these tax credits on the open market:
- Section 48 Investment Tax Credit
- Section 45 Production Tax Credit
- Section 48E Clean Electricity Investment Credit
- Section 45Q Credit for Carbon Oxide Sequestration
- And more
Cherry Bekaert’s team of experienced professionals is committed to helping our clients understand and recognize how these energy tax credits may benefit them.
State Credits & Incentives
Cherry Bekaert offers a variety of State Credits & Incentives (C&I) services, including statutory credit review and negotiated incentive opportunities to help businesses expand, save on taxes, and receive gap financing in low-income communities. Our team’s services include:
- Review of tax returns, employee rosters and financial data to quantify job tax credits, investment tax credits, training benefits, pollution control and recycling credits, location-based tax credits, and sales and use tax exemptions.
- Comprehensive site selection location strategy based on factors such as credits and incentives, tax and cost analysis, labor analysis, demographic analysis, and transportation analysis.
- Negotiate incentive opportunities such as cash grants and refunds, property tax abatements, payroll rebates, training benefits, utility incentives, and infrastructure assistance.
Cost Segregation Studies
Cost segregation is a strategic cash tax planning tool that allows property owners to increase their cash flow through the acceleration of depreciation deductions and deferral of tax payments.
The process involves segregating a portion of the building into shorter-lived assets. The ideal timeframe in which to conduct a cost segregation analysis is within the same year a building is constructed, or an existing structure is purchased.
However, this planning tool can also be implemented on a structure that was constructed or acquired several years earlier, thanks to the IRS catch-up provision that offers a taxpayer the opportunity to realize any missed depreciation without having to file an amended tax return. A cost segregation study can benefit your business by:
- Identifying the viability of potential energy tax credits, deductions, rebates and exemptions.
- Discovering potential personal and real estate property tax opportunities to save you money.
