Tax credit to promote innovation

The R&D Tax Credit is a federal tax incentive (also available in many states) designed to promote innovation. It allows companies to receive tax credits for expenses incurred for research and development, thereby lowering their tax obligation and increasing funds for future innovation.

Most qualifying expenditures result from the wages paid to employees that participate in qualifying activities. As a result, the potential for R&D tax credits can be substantial. If your company has been engaged in qualifying activities for the last several years, you may be eligible to retroactively claim R&D tax credits.

Benefits you’ll love

There are several benefits to realizing the R&D tax credit. These benefits can include the following:

Dollar-for-dollar reduction in your federal and state income tax liability

Increased in earnings-per-share

Improved cash flow

Credit carried forward up to 20 years

Look back studies can recognize unclaimed credits for open tax years

And More

up to 20 years

CREDIT CLAIM PERIOD

Projects that might qualify for relief

Primarily a labor based incentive, the R&D Tax Credit applies to activities undertaken to develop new, improved and more reliable products, processes and formulas such as:

  • Developing or testing new products or materials
  • Developing new or enhanced formulations
  • Testing new concepts Improving existing products Trial and error experimentation
  • Designing tools, jigs, molds and dies
  • Design and analysis of prototypes or models
  • Developing or improving production or manufacturing processes
  • Developing, implementing or upgrading systems/software
  • Paying outside consultants/contractors to perform any of these activities

Over 100 industry leading companies love us

As a rapidly growing Company, we were beginning to see the dramatic tax consequences of our growth and good fortune. In lieu of our growing tax liabilities we engaged Carrazco and our expectations were dramatically exceeded. Through their Innovative Tax Strategies, Carrazco secured hundreds of thousands of dollars in tax savings for our Company. Needless to say, RB Spencer is proud to have a business relationship with a Firm that delivers on their promises.”

BOB SPENCER

President - RB Spencer, Inc

Carrazco - Innovative Tax Solutions thoroughly analyzed current and future tax saving opportunities as well as prior year possibilities. By implementing Carrazco's Innovative Tax Strategies our company was able to realize over $200K in tax refunds and future offsets, increasing company cash flow and dramatically improving our bottom line.

RYAN ROGERS

Lakeview Petroleum

Although we had some understanding of the tax incentives available through the Yuba-Sutter Enterprise Zone, we had never thoroughly pursued it under the impression that our Company was too small to benefit. That changed when we met the folks at Carrazco who guided us to take full advantage of the benefits we were entitled. Carrazco's business philosophy of ”No Results, No Fee” made it so we had nothing to lose and everything to gain. The process was efficiently streamlined to make things simple...the results, on the other hand, were extraordinary!

RANDY FLETCHER

Fletcher Insurance Services, Inc.

Let us help you identify qualifying projects.