Research and Development Tax Credit

RESEARCH & DEVELOPMENT
TAX CREDIT

You did the work, now take the credit (literally!)

You don’t need to work in a lab to perform research and development. Simply asking the question, “How could this be better?” kicks off a process of discovery that the IRS would define as R&D. At H&S Companies we help business owners determine if they qualify for the R&D Tax Credit and identify the investments already made developing new products, consulting with customers to solve complex problems, and even re-engineering the basic ways of delivering value. Once quantified, these investments translate into tangible and often significant tax savings to help fuel continued growth and development.

Case Studies

Manufacturing:

A Muskegon based tool & die shop
29 employees involved in development
Received a $165,000 tax credit
Reinvested in new equipment

Agriculture:

A West Michigan based
farm
14 employees involved in research & development
Received a $55,000 tax credit
Freed up essential capital to fuel growth during the start-up phase

Breweries:

A Michigan based
brewery
9 employees involved in development
Received a $12,000 tax credit
Reinvested in distribution

Technology:

A Grand Rapids based
software developer
27 employees involved in research & development
Received a $98,000 tax credit
Reduced their cost of payroll so they could recruit more effectively

Additional industries that often qualify are Architectural Firms, Engineering Firms, Foundries and Packaging. If you find yourself creating something new or looking for ways to improve processes you might qualify as well!

How We Can Help

Credit Calculation and Support

For clients who create proprietary products or who are contracted to create solutions for other companies.

A free consultation to determine if your business qualifies and if the benefit is worth pursuing
Calculating the credit based on qualifying expense information provided from your accounting software (employees’ wages, supplies expense, contract research expense)
Offer recommendations on how to track qualifying expenses
Advise on the types of documentation necessary to maintain to support the credit calculation

Credit Calculation and Support with Enhanced Audit Protection

For companies that want peace of mind knowing that, in the case of an audit, they have the necessary documentation and a team of professionals ready to support them.

All elements of the R&D Tax Credit Calculation
Compile the necessary documentation typically requested during an audit by:
- Conducting interviews with employees to produce detailed project summaries explaining the qualified nature and qualified components of a sample of projects
- Detailing the company’s unique research and development costs in terms that clearly connect the nature of the expenses to the qualified criteria outlined per regulations