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Research & Experimentation Tax Credit

Hidden Tax Credit!

If your company has spent time and resources to improve your product and make it better, faster and cheaper, then it's likely that you have research and experimentation costs that qualify for the Federal Research and Development Tax Credit. The tax credit includes many more costs not typically captured in your accounting R&D Costs line.

Are You Eligible?

If your company engages in product development or process improvement activities such as warehouse/distribution, manufacturing process innovation or software creation, you may be eligible.  The government's statutory rules dictate that credible research must be technological in nature, constitute a process of experimentation and intend to result in a new or improved business component.  The rules are complex and no two businesses are the same. Eligibility will differ greatly. However, most companies will benefit from the following:

  • A reduction in their current-year effective tax rate
  • Cash refunds from previously filed income tax returns
  • Identification of activities qualifying for other tax incentives
  • Documented approach to identifying available credits that benefit future years.

How Does Dugan & Lopatka Uncover Credits?

The secret to identifying your research and development tax credits is obtaining an in-depth knowledge of your processes. You frequently cannot capture available credits by relying only on accounting data. Companies typically spend more money in process improvement than product design. Although many companies do not design their products, they spend valuable resources improving the production process.

There is no easy way to capture process improvement expenditures. They're buried in "manufacturing" accounts. By conducting thorough research and interviewing key personnel, Dugan & Lopatka's R&D Tax Credit Team helps you uncover and identify these hidden expenditures.

Why Dugan & Lopatka?

Most CPA firms are generalists and do not have a thorough understanding of the government requirements for this tax credit. Likely your CPA firm didn't even mention the R&D tax credit to you. We understand tax. We also understand the research & development tax credit rules. If you would like to know more about how we can help you, please complete the Contact Us form or call us at (630) 665-4440.

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Dugan & Lopatka, CPAs, PC, 104 E. Roosevelt Road, Wheaton, Illinois 60187 -MAP- T: (630) 665-4440 Fax: (630) 665-5030