In this comprehensive webinar, Kim Lockridge and Gabriel Florentino from Engineered Tax Services goes into the intricacies of Research and Development (R&D) Tax Credits, highlighting recent changes and strategies for maximizing benefits. Whether you're a business owner, accountant, or tax professional, this video offers valuable insights into leveraging R&D tax credits effectively.
The R&D Tax Credit is one of the most powerful—yet underutilized—incentives in the U.S. tax code. While many believe it is reserved for scientists in lab coats, Kim Lockridge explains how architects, engineers, software developers, and even food manufacturers can unlock significant tax savings.
In this presentation, Kim breaks down the Four-Part Test, the mandatory criteria every business component must meet to qualify for the credit. She emphasizes the “Napkin Stage to Production” lifecycle, explaining exactly when R&D activity starts and stops. You'll also learn about the critical shift from a temporary provision to a permanent fixture of the tax code, and how startup companies can now use R&D credits to offset FICA payroll taxes up to $250,000 per year.
What You’ll Learn:
- The 4-Part Test: A detailed breakdown of Permitted Purpose, Technological in Nature, Process of Experimentation, and Elimination of Uncertainty.
- Qualified Research Expenses (QREs): How to calculate the credit using W-2 wages, subcontractor costs (1099s), and supplies used or destroyed during testing.
- The PATH Act Impact: How startups and companies subject to the Alternative Minimum Tax (AMT) can finally utilize these credits.
- Section 174 Amortization: Understanding the 2022 shift from immediate expensing to 5-year amortization (15 years for foreign research) and its impact on your bottom line.
- Contemporaneous Documentation: Why simply filing Form 6765 isn't enough and what you need in an executive summary to survive an IRS audit.
Key Industries That Qualify:
- Design & Construction: Architects, Engineers, and Design-Build firms.
- Technology: Software developers and App creators.
- Manufacturing: Tool and die, plastic injection molding, and pharmaceutical companies.
- Food Science: Breweries, wineries, distilleries, and specialty food processors.
About Engineered Tax Services (ETS):
ETS is a premier specialty tax firm that works in conjunction with CPAs to provide cost segregation, R&D tax credits, and energy certifications (179D/45L). With over 23 years of experience and deep involvement on Capitol Hill, ETS helps democratize the tax code for businesses of all sizes.
