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"R & D" Tax Credits?

ttrager

Cast Iron
Joined
Jul 23, 2015
Location
East Side / Detroit
In browsing the Realtrac ERP website they have a page dedicated to talking about R & D Tax Credits many manufacturers can qualify for, but most of them either don't know about it so don't bother. Then they gave a series of examples of cost/time examples in a shop performed to improve operations or facilitate/enable a job.

For you shop owners out there, have you experience with claiming a tax credit attributable to "R & D" work in your shop?

Thanks in advance.
 
I have never taken any tax credits over the years. It takes time to figure that stuff out and I spend my time machining parts. I dont have time to chase after tax credits. I just chase after paying customers and make them what they need. Then I get paid.

Chase after the available work and it will keep coming in. Chase after tax credits and you will be making things that arent needed just to save some money.

The idea is to make money and then save it. Not look for ways to avoid paying for things.

Tax credits are tricky and take you away from the reason you got into business to begin with. R+D is not my cup of tea and I can see the challenges.
 
R&D Tax credit is pretty easy. Any salary workers, you can claim a percentage of their time to go towards the credit. I think for the engineers we use something like 70% of their time is for R&D.

Then we do a percentage of hourly people based on what type of work they do.

Then we do case studies on 3 specific R&D projects. Document what we did, why we did it, and the results.

Submit all of that and get a decent tax credit. It is a small amount of work, takes maybe a day to get it all put together.
 








 
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