Michael J. Devereux II, CPA, CMP is a partner and director of manufacturing, distribution and plastics industry services at Mueller Prost. Devereux’s primary focus is on tax incentives for the manufacturing sector. Mueller Prost’s Tax Incentives Group is nationally recognized and has assisted hundreds of manufacturers capture these benefits. Mike regularly speaks at manufacturing tradeshows and events, and he writes regularly on tax topics relevant to the manufacturing sector.
One of the most under-utilized tax savings opportunities for finishers is the U.S. Credit for Increasing Research Activities (R&D tax credit). The R&D tax credit rewards companies who invest resources in innovation, product development, process and technique development, new materials or resins, and process development/improvement. In addition to Federal tax savings, several states have a similar program that rewards companies for the development or improvement to its products or processes.
The types of activities that may qualify for the R&D tax credit include, but are not limited to the following:
- Developing new processing techniques
- Developing new product designs or solutions
- Custom product design and development
- Experimenting with new materials
- Experimenting with novel processing and manufacturing techniques
- Experimenting with new decorating technologies
- Developing new foil stamping techniques or coatings
This presentation will address the following:
- The types of activities that may qualify for the R&D tax credit
- The types of expenditures that are eligible for the R&D tax credit
- How eligible small businesses (companies with <$50 million in sales) may offset the Alternative Minimum Tax (AMT) in 2016 and thereafter
- The types of documentation necessary to substantiate a R&D tax credit claim
- A look at new treasury regulations that may expand upon eligible expenditures for finishers