Act Now – It’s Not Too Late to Benefit From the 2017 Tax Year

 Retroactive Tax Extensions

 Go Back In Time and Benefit From the 2017 Tax Year

The Bipartisan Budget Act, signed into law by President Trump in February 2018, includes over 30 incentives and breaks for taxpayers, including retroactive extensions for the 179D Energy Efficient Tax Deduction, and the 45L Energy Efficient Home Credit. While the qualifying standards for benefitting from these incentives have stayed the same, the Act has extended the incentives to properties and improvements placed into service through December 31st, 2017, which is an entire year past the original date of December 31st, 2016.

Apply Before the Deadline

Reap Your Unclaimed Tax Benefits Now

Although these lucrative energy-efficient incentives have been extended, the Bipartisan Budget Act wasn’t signed into law until 2018, making it impossible for taxpayers to gather the proper documentation and submit it to the IRS in the time permitted for their 2017 tax returns. Taxpayers are now able to file claims and take advantage of retroactive tax breaks from the 2017 tax year through extensions provided by the Act.

If you have filed an extension and have a tax bill due in September, you are able to take advantage of these provisions before the extension deadline on September 15th, 2018.

Building owners, contractors, or architects working on government buildings that have completed any lighting upgrades in the last year can greatly benefit from this extension.

179D Energy Efficient Tax Deduction

  • Any commercial property or 4+ story multi-family property
  • Property that has been newly constructed prior to December 31st, 2017
  • Property with retrofits to lighting, HVAC, or envelope components that result in reduced energy consumption
  • Eligible properties qualify for up to $1.80 per square foot, or $0.60 for lightning, HVAC, or envelope benefits
  • Commercial building owners and architects are able to reap the benefits of 179D

45L Home Credit

  • Single-family or multi-family homes 3 stories or less
  • $2,000 tax credits available per qualifying units
  • Newly constructed or majorly renovated homes
  • Contractors and builders are able to reap the benefits of 45L

Contact National Tax Group Now

The deadline to apply for provisions to the 2017 tax year is September 15th, 2018. Our team of in-house experts and engineers will perform a thorough examination of your efforts and compile an accurate and timely written proposal to be submitted to the Internal Revenue Service.

Don’t let your well deserved tax credits, deductions, and incentives go to waste. Contact us today and start the process of claiming what you deserve.

100% Depreciation – Take Advantage of the Tax Cuts and Jobs Act of 2017

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Bonus Depreciation and Cost Segregation

Unlock More Capital Than Ever Before

The Tax Cuts and Jobs Act (TCJA), signed into law by President Trump in December of 2017, has had an effect on a variety of taxpayers, and has made widespread changes to the Internal Revenue Service. One of the main groups of people that benefit from TCJA are commercial real estate owners and investors, who are now able to qualify for significant tax benefits including bonus depreciation and cost segregation studies.

Benefiting from The Tax Cuts and Jobs Act

Increase Bonus Depreciation

One of the main benefits of the TCJA is the increase of bonus depreciation from 50% to 100%. Prior to the new bill, bonus depreciation only applied to newly constructed or original property. Real estate owners and investors are now able to benefit from bonus depreciation. Used property that has been acquired after September 27th, 2017, and properties under $1 million can also benefit from bonus depreciation. A cost segregation study will establish what costs qualify for 100% bonus depreciation.

Expansion of Qualifying Properties

Maximize Cash flow With Additional Property write-offs

The TCJA has also expanded the list of qualifying properties to include roofs, HVAC systems, fire protection, alarm systems, and security systems. The allowable expense of these properties has been increased from $500,000 to $1,000,000, and the phase-out deduction has increased to $2.5M. Properties now include personal property that has been acquired for rental properties, furniture, and appliances.

The TCJA has opened the door for any owner or investor of a new or used property to maximize savings. A cost segregation study will identify all qualifying assets, and determine the ability to use the new bonus depreciation provisions.

100% Immediate Bonus on First Year Deductions

Immediate First Year Deduction

Bonus depreciation allows a business to take an immediate first-year deduction on the purchase of an eligible business property. Under the new law, bonus depreciation has increased from 50% to 100% for assets with a modified accelerated cost recovery system life of 20 years or less. Our team of tax experts and engineers are able to immediately write-off assets depreciated under 20 years, thus increasing cash flow.

Understanding the R&D 4-Part Test

People sitting by a laptop, with a coffee cup and a notebook

Qualifying for R&D

A lot of companies qualify without realizing they do.

Research and Development Tax Credits are available to any corporation, business, or startup that engages in research activities to develop or improve their products, processes, or software. The main qualifier to benefit from R&D credit is to pass the 4-Part Test. Read more

Startups are Cashing In On R&D Credits

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Reaping The Benefits

An incentive for more companies than you thought.

The Research and Development Tax Credit was created as an incentive for companies to be creative while performing research activities to develop or improve their products, processes, or software. We are thrilled to now offer startups assistance with capitalizing on R&D Tax credits by offsetting it against their payroll taxes.

What This Means

Don’t get shutout anymore.

Startup companies have been shutout in the past from claiming R&D simply because they lacked tax income liabilities. These blossoming companies are now able to take advantage of this money-saving credit due to a 2015 provision, which broadened the scope of industries that are able to benefit.

If your startup is making less than $5 Million in annual gross and performing qualifying research, we can work with you to offset as much as $250,000 on your payroll tax liabilities to compensate your business for the money spent performing the research.

Saving Money with R&D

We understand the importance of saving money, especially in the first few years of owning a new company. A common concern for startups is how they can quantify spending money on developing or improving their product, before they even start generating a profit. That’s where we step in to reclaim costs spent on Research and Development.

We offer our assistance before, during, and after the qualifying research activities are completed. We will complete a full assessment to ensure that you have the proper documentation, and have taken all necessary steps to pass the R&D 4-Part test.

What is the 4-part Test?

A simple solution to a complicated problem.

The 4-Part test, created by the IRS, takes an extensive look at your research and development processes. The 4-part test is the main qualifier for any company to benefit from the R&D Tax Credit. For an in depth analysis of the 4-part test and it’s qualifications, you can read our article.

 

Audit Support Provided To Ease Your Mind

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Tax Experts You Can Rely On

Our in-house engineers and tax experts take pride is setting up our clients for success when they work with us to take advantage of our numerous tax saving services. We don’t take our client’s trust lightly, and understand that they count on us to acquire the most amount of money and savings we can, while abiding by the rules and regulations put into place by the IRS. We’re with our clients every step of the way, even after their taxes have been submitted.

No Cost, No Stress

We are proud to say that when you work with us, you are guaranteed a marginally low risk of ever being audited. We do understand that there may come a time when a tax credit or deduction claim is subjected to examination by the IRS or State Tax Authorities. We are the tax experts you can trust for a reason and we are always prepared to provide any documentation needed to bring you through to the other side of an audit without incident.

Our audit support will always be free because we care about our clients. Let us be your trusted advisors.

The Same Tax Experts You Trust – With a Brand New Name

 Changing Our Name To Better Serve You

With the growing number of tax-saving services we offer our clients, we have moved beyond the name National Cost, and are excited to introduce our new company, National Tax Group. The main goal is for our clients to know that we are still the hard-working tax services team with the mission of offering top-tier tax solutions to CPAs and businesses, but are now able to assist our clients in more ways than ever by capitalizing on two new services – R&D Tax Credits and 45L Tax Credits. Read more

How To Improve Your Business With R&D Tax Credits

The R&D Tax Credit

There are a lot of ways that businesses can benefit from research and development (R&D).  Recently, an R&D tax credit was established by Congress, taking shape after a decision in the early 1980s to help businesses in the United States remain viable in the world marketplace. The laws on credits were made permanent in January 2016, geared towards existing and new businesses alike. Small, medium and large businesses have the opportunity to pursue R&D tax credits and get reimbursed for some of their developmental expenses.

The business community can use R&D taxes to establish, refine, and improve their business model without it coming entirely out of pocket.

The credit could help your company acquire other incentives while innovating and staying competitive in the market at large.

The businesses particularly affected from this decision are the manufacturing, software, technology and architectural, as well as engineering industries.  Many enterprises have acquired billions of dollars from federal and state tax credits to cover the research and development expenditures that they undergo on a regular basis. The businesses that use R&D strategies can receive up to 10-15% or more ROI to cover wages, contractor and supplies cost.

However, many companies that are eligible have not even tried to claim these funds.

How To Improve Your Business With R & D Tax Credits

Consumers are attracted to products and services that are innovative and on the cutting edge. Research and development are great ways for businesses to create these kinds of products to fit the expectations of customers. Whether your organization focuses on science or technology, R&D can make a big difference in getting the best new features and staying ahead of the competition. With recent tax credit incentives, businesses that utilize research and development can benefit significantly. Companies in the United States were anticipated to spend $465 billion on research and development in 2014. These R&D investments were about 2.5% of U.S GDP.

Many firms continue to invest in research and development because they want to expand by creating the new product– that’s why this tax credit comes in handy.

R&D Credit Reforms by Congress

Companies in the US continue to invest in R&D to maximize profits and improve their offerings. Congress has made it easier for developing businesses to succeed in this environment. One of the most important proposal ideas is a bipartisan bill which will motivate companies to continue research and development by incentivizing the process. This bill will enable many companies to manufacture new products in the USA. It is usually designated for companies to conduct research and development on U.S in areas such as science and technology.

The bipartisan bill will support allocation of R&D funds and increase the actual production of novel products and services too. The R&D tax credit reforms support both basic and applied sciences which are integral parts of the manufacturing process and production line.
The Senators bill offers a 25% increase on R&D credit taxes for companies manufacturing products in the U.S. This will improve research and production of new products throughout the country too. The R&D tax credit reformation facilitated by Congress will help both small and medium companies to enter competitive spaces while improving available services to consumers.

Another one of the proposal aims is to increase Alternative Simplified options to 20% from 14%. This is similar to regular R&D tax credits and the bill will support new companies by allowing credit which is equivalent to 10% of the taxpayers qualified research cost per annum. The amendment reforms 280C of the tax code and will affect small and mediums investor who are looking forward to obtaining R&D tax credits for the first time. The lawmakers proposed to reduce expenses involved in research and development to allow taxpayers to elect to apply for a reduced R&D tax credit on both original tax return.

The amendment will bring changes and reformation that strengthens both small and medium business no matter what face they are in. The PATH Act also removes all problems that affect small and medium companies that take on R&D tax credit. Many investors have started accepting the R&D tax credit especially among those who own and operate small scale enterprises.

Benefits of the Tax Cut on R&D

The 21% corporate tax rate cut is set to improve the production capacity of the economy on a whole. It will also help manufacturers in the US to become more competitive in production. This decision will ultimately encourage suppliers of capital equipment to write off materials used throughout the year. The cost of equipment increased to 11.4% over the years making this almost necessary to maintain profit margins.

The cut on the tax R&D is seen to be a generous tax reform package from the standpoint of U.S manufacturing organizations. This is because deductions focus on investing in technology and capacity building to produce unique products that are attractive to consumers across the globe. Automotive investors will take advantage of the reformed policies on R&D taxes to invest more than in previous years. Manufacturers admit that the changes in taxes make capital expenditure less costly for automation equipment at large. The decrease in corporate tax rates is also a big boost for the manufacturing industry in the U.S. Ultimately, the transformation in tax amendments will be a great asset to capital equipment producers for years to come.

How Business Benefit from R&D Tax Credit

This tax credit improves and strengthens the market value of both business operations and services. Money saved can be reinvested into a new R&D project which is the ultimate goal. The new R&D can enhance company growth and cash flow for future operations. Funds generated from the state tax credit and federal ones alike can be carried forward for up to two decades, adding to the advantages received by small businesses. The tax credit is offered to allow company design, development, processes, and invention of new products– something that many startups may struggle with on their own.

The IRS gives credits to help businesses stay competitive in the United States. There’s no reason why industries in the US should fail to experience growth and change because the R&D tax credit is available to all entrepreneurs.

Businesses just like yours could get over $10 billion per year from the IRS regardless of the size and type of the company. Nearly all states give the R&D tax benefits to supplement all business. These incentives are meant to build the capacity of the industry to consistently manufactures goods and services. Without the help of credit tax on R&D in the US, many enterprises are likely dying at conception. Start-up business operating under $5million can qualify over $250,000 against payroll liability. This amount can help start-up businesses to improve its research and invention.

Conclusion

Despite the fact that, the R&D credit tax is available, many companies don’t apply for it. Small and start-up business should take advantage of R&D credit tax to improve production and growth with no out of pocket costs.

Find out how your business can succeed with tax credits by contacting us!