What is planned: The Lunch & Learn, “The Research Tax Credit: An Underutilized Asset for Tech and Manufacturers,” is scheduled for Thursday, August 25 from 11:30 a.m. to 1 p.m. at the Velocity Center in Sterling Heights. The event is free and open to the public and guests receive a free lunch. Registration is available online.
Why it matters: “The Research Tax Credit is a very underutilized asset that few companies use, either because they don’t know about the tax credit at all, or because they think they won’t. not eligible,” says Dan Osterland, business development manager for DST Advisory Group. “We are trying to impress upon these companies that they are very likely to be eligible.”
How it works: The Research Tax Credit is a dollar-for-dollar tax credit that can be claimed by companies developing or improving products, processes, techniques, formulas, inventions or software. If a company spends $100,000 on qualifying R&D expenses, for example, it would be eligible for a 7-10% tax credit, saving it $7,000-$10,000. Additionally, DST Advisory Group, an accounting firm that specializes in securing these tax credits for businesses, says the credit can be applied for up to three years of open tax years. The savings can add up quickly, says Osterland.
Underutilized is right: According to the DST Advisory Group, only 30% of the more than 630,000 manufacturing companies in the United States claim the tax credit; 70% are not. At the same time, 90% of manufacturing companies have assets eligible for the Research Tax Credit.
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