$14B Available to MN and WI in Manufacturing Tax Credits
$14B Available in Manufacturing Tax Credits
We work with all industries, but here I'll speak to those involved with manufacturing. Please know that many of these things apply to all industries as well. Ter Scott, Senior Advisor.
There is a new bill that would put $14B in tax credits back into the pockets of manufacturers. What makes this bill unique amongst its predecessors is that manufacturers don’t have to wait around for this one to pass through its bureaucratic channels (or stall out in a constant state of delay and confusion).
Manufacturers can take advantage of this program before it passes. This is because a largely unknown version of the program already exists called the R&D Tax Credit. A temporary version is in place through the end of 2013 as part of the American Taxpayer Relief Act of 2012. So, manufacturers can actually begin receiving funds this year based on previous years activities.
5 Reasons Manufacturers are not taking advantage of the current version of this credit:
They don’t understand the IRS definition of R&D (see article: R&D I don’t think we do that!)
They believe their companies are too small
They believe the benefit won’t outweigh the work
They believe they have to change the way they operate in order to qualify
They believe that the credit is not being renewed
Not only will this credit most likely be renewed, but Congress has continually made it easier to qualify and expanded the eligibility to include not only the Fortune 1000 but also small to mid-sized firms who can utilize the credit to significantly affect their bottom line.
When working with manufacturers we ask two questions to determine qualification:
Are you expecting to be profitable this year, or were you profitable in any of the last 4 years?
Is your annual payroll for any of these years in excess of $1 million?
Since 2004 Growth Management Group has been educating and assisting Manufacturers and other Commercial Property Owners on their rights to programs buried deep within the tax code. To date, we’ve assisted small and mid-sized companies discover over $300M in benefit.
Original article published online at GMGSavings.
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