Any company that designs, develops, or improves their products, processes, techniques, formulas, inventions, or software may be eligible.
The Research Tax Credit law has undergone dramatic changes since its inception in 1981. The credit became permanent for the 2016 tax year with favorable new rules, including an AMT fix, preferential rules for small businesses and easier methods to calculate the credit amount.
Opportunity: Any company with new or improved products/processes, software, or research expenses may qualify for this tax credit. A credit directly reduces, dollar-for-dollar, the overall tax liability for a business. Now is the time to put systems in place or update your existing filing methodology.
Implementation: This credit is based on how much qualified research expenses (“QRE”) are incurred from qualifying activity over a base amount. The credit is calculated each year, so the base, QRE and credit amounts change with the qualifying activity. We determine the proper inputs into this calculation based upon interviews or surveys of key individuals most familiar with the activities of the organization as well as analysis of contemporaneous documentation, project and accounting data to establish qualification. In addition, you can rest assured that ThreeFive will file detailed, supportable claims for refunds or credits owed to your company. Our professionals know the rules, regulations, pronouncements and how to apply them to your situation — as well as having the valuable ability to speak the language of your engineering and development personnel. All of this results in the optimal and most defendable results for both federal and state tax credits.
Result: Upon completion of a research credit study, our clients will benefit from tax savings and a lower effective tax rate. Our fee is based on that result.
Nestled in the heart of the Twin Cities on Lake Calhoun, ThreeFive has fostered a work environment to attract key talent that is second to none in addressing corporate tax benefit opportunities for its clients.