Renewable Source of Revenue
At Walz Group, we make it our business to know your business. No matter the industry, our Subject Matter Experts have the technical knowledge to understand your activity, and the tax expertise to maximize your R&D Credit. Our IRS-preferred approach is supported by a dedicated team of attorneys, engineers, and tax professionals, partnering with you to optimize your tax liability today – and help you plan for tomorrow.
WHAT IS THE R&D TAX CREDIT?
The federal R&D Tax Credit is a business incentive encouraging US companies to develop new and improved products and processes.
HOW DOES THE R&D TAX CREDIT BENEFIT TAXPAYERS?
The Credit pays taxpayers back, offering up to 10 cents in benefit for every qualifying dollar spent on research activities. Many firms earn Credits of 6-figures or more, providing a significant dollar-for-dollar reduction in tax liability. The resulting increased cash flow can be reinvested into new hires, expanded infrastructure, or further innovation.
CAN THE R&D TAX CREDIT BE TAKEN MORE THAN ONCE?
This powerful Credit is actually renewable – as long as you remain eligible, you can claim this Credit annually, generating a reliable source of capital.
The Credit can also be captured retroactively. Taxpayers can “turn back the clock” up to 3 years, and amend past returns to claim the Credit in eligible tax years.
WHAT KIND OF INDUSTRIES CLAIM THE R&D TAX CREDIT?
Taxpayers in manufacturing, construction, software development, and life sciences commonly claim R&D Tax Credits. However, companies in virtually any industry can qualify for the Credit, as long as they perform qualifying activities.
WHICH ACTIVITIES QUALIFY FOR THE R&D TAX CREDIT?
To qualify, a research activity must meet all 4 parts of the IRS’ “4 Part Test”:
If you have engineers, architects, designers, or developers on your staff, you are likely performing qualifying activities.
WHAT COSTS QUALIFY AS R&D EXPENSES?
Costs paid for employee wages, supplies/materials, cloud hosting, and third-party services may be claimed under the Credit.
Wages are often the largest cost, though manufacturers also have significant supply and material expenses.
DOES PENNSYLVANIA HAVE A STATE R&D CREDIT?
In addition to the federal version of the incentive, about 40 states have their own R&D Tax Credits, including Pennsylvania. Federal and state incentives can be taken simultaneously, often doubling the benefit.
HOW CAN I LEARN MORE?
The experienced team at Walz Group is here to help determine your eligibility, estimate your potential Credit, and walk you through the claims process. If you decide to move forward, we’ll do the heavy lifting, minimizing the time burden while maximizing the Credit. You can feel confident that your Credit will be documented thoroughly, leveraged fully, and compliant with all evolving federal requirements.
"The R&D Tax Credit helped us continue funding new iterations of our batteries. The electrical vehicle (EV) market is competitive, and working with the Walz Group to unlock new capital – that made all the difference in our success."
Company EV specializes in developing advanced electronic components for consumer electronics. By working with the Walz Group, Company EV was able to successfully claim the R&D Tax Credit, and the associated capital benefits.
