Services at Topel Forman
R&D Tax Credits
Businesses must constantly innovate if they want to continue growing and succeeding. These efforts may qualify them for the Research and Development (R&D) tax credit. The R&D credit aims to keep jobs in the United States and make U.S. manufacturing companies more competitive globally. However, the IRS estimates that only 10% of the companies that qualify for the credit actually apply for it.
Who qualifies for the credit?
Any company that develops, designs, or improves products, processes, formulas, techniques, inventions, or software can be eligible for the credit. Research and development can come from engineers, software developers, factory workers, tooling workers, and various other areas.
The research tax credit uses a percentage of wages and the cost of supplies. The credit results in a dollar-for-dollar reduction in the company’s tax liability. If the business is a flow-through entity, the credit will flow directly to reduce the individual’s taxes. If the company is in a loss, the tax credit can carry-forward for up to 20 years.
Many small businesses do not take advantage of this R&D credit due to the high cost, audit risk, and painful process of hiring consultants to calculate the credit after the end of a tax year.
Eligible Industries
- Architecture and engineering
- Biotech
- Manufacturing, including but not limited to chemical, computer, electronics, electrical equipment and components, medical devices, and plastics
- Construction
- Design-build manufacturing
- Metal fabricating and casting
- Software development
- Tool and die
Qualifying Activities
- Designing new, improved, or more reliable products, processes, or formulas
- Designing new products for the company
- Designing tools, molds, jigs, and dies
- Certification testing
- New concepts and technology
- Improving manufacturing processes, including incorporating new equipment
- Improving production processes, including incorporating new equipment
Our Services
Accounting & Assurance
We analyze and report your company’s financial statements and identify potential concerns, leaving enough time to allow a practical and cost-effective resolution to issues.
Taxation Services
Complications created by ever-changing tax laws and regulations have made advanced tax planning an essential element for companies operating in today’s marketplace to be successful.
Consulting Services
We offer an expansive range of business consulting services to help our clients with compliance, strategic planning, financial management, economic projections, and forecasts.
Wealth Management
Family Office
We understand that each family has unique needs, and we work with all types of family offices to provide income tax planning, estate, gift tax planning, accounting services, and financial reporting.
R&D Tax Credits
Businesses must constantly innovate if they want to continue growing and succeeding. The R&D credit aims to keep jobs in the United States and make U.S. manufacturing companies more competitive globally.