Over the past few years, legislative changes have expanded
the opportunity for many industries to qualify and claim the
research credit. Through the research credit, the federal and
many state governments are providing subsidies for your
investment in a product or a process to remain competitive.
How Can the Credit Benefit Your Company?
• May provide a source of capital through significant cash refunds of previously paid state taxes.
• State credit rewards companies up to $250,000 per year credit for qualifying sourced R&D expenses.
• State credit has a unique refundable provision in the event that taxpayer does not have sufficient taxable liability to reduce.
• State regular credit is available for all open tax years with a $1.0 million maximum refund opportunity, and can offset state tax liability with any excess being refunded subject to New York limitations and budget considerations.
What Types of Activities Qualify?
• Investing in resources for new products or for improving products.
• Investing to develop new or improved manufacturing or service processes.
• Attempting to improve manufacturing efficiency, reduce scrap and implement techniques such as “Lean,” “Green” and “Kan-Ban.”
• Existing or Patents Pending.
Some Industries Which Have Benefited
• Aerospace and Defense Contractors
• Architecture, Design and Engineering Service Firms
• Automotive Products
• Consumer Products
• Financial Services
• Food Processing
• Furniture Manufacturers
• Life Science
• Metal Processing Industries
• Plastic Manufacturing
• Software Development
• Specialty Heavy Industry Manufacturing
• Technology Start-up Companies