R & D Tax Incentives
Governments typically incentivize private industry to produce research and development (R&D) as a strategic tool to advance their economies. Initially temporary, the federal R&D tax credit became the United States' primary means for rewarding businesses for investment in research. The PATH Act of 2015 permanently extended the R&D tax credit and expanded its provisions.
There are over 40 million Small and Medium Size businesses in the United States today that have less than 50 employees. This number makes up about 83% of the American Workforce. Out of the 40 million businesses, only about 13% of these businesses take advantage of any R&D Gov't Incentive.
Self-Censorship: The business owners think that they do not qualify. Wrong; 95% of the businesses in the United States qualify.
It's too difficult: It is complex, but we take up that burden for you. Your involvement is 15 minutes to qualify, 30 - 45 minutes to answer some questions and the time it takes to upload your past 3 years of tax statements into a secure link.
Cost Segregation Study
Using a Cost Segregation analysis of a commercial property CBI and their partners complete an "estimate of savings" for our client. These "savings" can be applied to offset federal tax liability.
Purchasers of real estate can gain tremendous tax benefits by using a popular asset depreciation technique called cost segregation. Using this method, buyers view a real estate acquisition as consisting not only of land and buildings but also tangible personal property and land improvements. The tax savings come from accelerated depreciation deductions and possible easier property write-offs.
Cost segregation can also help decrease insurance premiums; more easily qualify for future bank loans, and better understand the property life span. A taxpayer can use cost segregation when constructing a building, buying an existing one, or, in certain circumstances, years after disposing of one so long as the year of disposition still is open under the statute of limitations.
Most commercial construction projects and real estate acquisitions over $500,000 can enjoy significant savings with cost segregation.
State Sales & Use Tax (SUT) Exemption
For a wide range of businesses, sales and use tax exemptions represent bottom-line cost reductions that are just waiting to be claimed. Most companies are aware of some or all of the applicable exemptions in their state, but changing legislation makes it difficult to take advantage of all of them, especially when the company has locations in multiple states.
However, if missed benefits are identified and adequately documented, refunds and tax credits may be available. A partial sales and use tax exemption allow certain manufacturers, researchers and developers, as well as a wide range of other businesses to pay a lower sales or use tax rate on qualifying equipment purchases and leases.
Federal Empowerment Zone Hiring Credit
Empowerment Zone tax credits are available to companies doing business and employing current residents in areas deemed to be empowerment zones.
Tax credits of up to $3,000 per employee per year (the maximum credit that an employer may claim each year for each qualified zone employee in a designated empowerment zone is $3,000 ($15,000 maximum qualified wage x 20%) are available to eligible companies, which could generate significant tax savings for companies operating in these zones. While this program originally expired at the end of 2017, legislators have reinstated it through 2020.
Empowerment zone credits can be claimed retroactively going back 3 years.
Energy Efficient Commercial Building Deduction
If you are a business owner or professional contractor/engineer, you are aware of the high cost that taxes can incur on your business proceeds. Many legal provisions provide for tax cuts.
The 2005 Energy Policy Act (EPACT), Section 179D, consists of a provision for tax deduction applicable to energy efficiency modifications to commercial buildings. The Energy-Efficient Commercial Building Deduction (179D) is a tax incentive that allows owners and designers to claim as a deduction an amount based on the square footage of new building construction or remodel.
The tax provision incentive allows for a $1.80 per square foot deduction of energy-efficient space. The 179D Tax Deduction specifically applies to those commercial buildings that notably reduce their interior lighting energy costs, as well as heating, cooling, and building envelope. The deduction is awarded to retrofits and new buildings.
Furthermore, the deduction is technology-neutral - it does not favor any means of energy reduction used in a building.
Building owners can take this deduction back retroactively to when the deduction was created in 2006. People often wonder how the 179D certification process works. The process itself is relatively complex, but when working with the right firm, like CBI and their partners, you can rest assured that it will be completed as smoothly as possible.