Tax reform has created ample changes for businesses, as well as confusion in the marketplace for what applies and what doesn’t. The clarity around applying the Research and Development (R&D) tax credit is no exception.
The R&D tax credit is granted to companies engaged in R&D activities. It is a dollar-for-dollar credit offset against income tax liability – making it much more advantageous than a deduction. The credit is available federally, as well as within some state tax laws.
Generally speaking, businesses who do not claim the R&D tax credit aren’t sure which activities qualify as research, what expenditures qualify for the credit, what documentation is needed to demonstrate research, and how to use the credit appropriately.
To help explain this, K·Coe Isom recently hosted a webinar on the opportunities available to craft brewers – of all shapes and sizes – that are looking for an opportunity to reduce income tax liabilities.
To find out more about whether you are a candidate for the R&D tax credit, which brewery activities and expenses qualify, and how to assess how much credit you can utilize –
If you’d like an assessment, a K·Coe Isom tax expert can evaluate your craft brewing business to calculate how much R&D tax credit may be available, how much credit you can utilize, and how much work it will be to get the benefit. Request your assessment here.