Rewarding innovation In All Industries
The U.S. Research and Development (R&D) Tax Credit was created in 1981 as an incentive for businesses to take risks and undergo research activities to develop or improve their products, processes, or software. The research and development tax credit was introduced through the Economic Recovery Act of 1981 offering reimbursement for business activities and resources that were utilized during the research.
Due to a 2015 provision, more companies than ever are able to benefit from the R&D tax credit for research activities they’re already doing.
Impact of the Tax Cuts and Jobs Act (TCJA) on R&D
Under the TCJA, research and development expenses can no longer be fully deducted in the filing year. Now, domestic expenses must be amortized over five years, and international expenses over fifteen years.
For the first taxable year after the change takes effect, taxpayers can file a statement with their federal income taxes to change their accounting method. Changes made in subsequent years require a Form 3115 Application for Change in Accounting Method.
Not Just For Lab Coats
R&D Tax Credits are available to any business in any industry that performs qualifying research activities. Businesses are no longer required to strictly develop a product or process that is unique to their industry; it only needed to be unique to them.
Although a wide variety of businesses qualify for the R&D tax credit, less than 1/3 of companies utilize the tax credit, and those who do, often do not reap the maximum amount of credits that they’re entitled to.
National Tax Group assists companies of all sizes and industries in obtaining R&D credits by providing reliable documentation that will withstand any level of IRS and state authority scrutiny.
In order to benefit from the R&D tax credit, all research activities performed by qualifying companies must be thoroughly documented. Our team of tax-saving experts will create and provide the needed documentation.
in federal R&D credits are given out to companies across the US each year.
Go green, save green
179D is a tax incentive that is available for newly constructed or renovated buildings that have installed energy-saving elements. This tax deduction provides tax-saving benefits for commercial building owners, as well as architectural and design firms that have worked on projects for public agency-owned facilities.
Originally passed under the 2005 Energy Policy, the 179D tax provision allows a tax deduction of up to $5 per square foot for both new and existing buildings.
Schedule a free consultation with our team
of experts to learn more!
DO YOU PASS THE 4-PART TEST?
Permitted Purpose
The research activities are done to improve the quality, function, or reliability of a process or product.
Technological Uncertainty
The activities must identify information to remove ambiguity in the development or improvement of a production process.
Systematic Process
The activities must involve simulation, logical trial, and error, assessing alternatives, and refining hypotheses.
Technological in Nature
The research done relies solely on physical sciences, biological sciences, computer sciences, or engineering.
How Do You Qualify?
If you are not sure if the activities you want to claim to qualify your business for the R&D tax credit, National Tax Group will be able to give you a quick and free assessment to make it easy on you. A few examples of activities that qualify are:
- Creating new or improved products or formulations
- Enhancing the functionality of existing products or formulas
- Creating new or improved processes within production or execution
- Assisting customers with troubleshooting technical issues
- Creating new or enhanced software to be used or sold on the market
- Applying for patents and prototype development costs
Total Deduction:
$11.2 MM
Project Types Include:
- List Item #1
- List Item #2
- List Item #3
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TESTIMONIALS
What Our Clients Are Saying
How Do You Qualify Based on Your Industry?
The 179D Tax Deduction is for Architects, Engineering Firms, Commercial Building Owners, and Construction Firms. This deduction is especially profitable for renovation projects, usually performed by these professional teams.
Qualifying Energy-Savings Are All Around You
It can be difficult to figure out if your building’s energy efficiency improvements qualify for this deduction. National Tax Group makes it easy with an in-depth study of your project and how it qualifies.
EPAct 179D studies are applicable for the following:
- New construction of commercial buildings
- Upgrades, renovations and retrofits, improvements to lighting, HVAC, envelope (roof, insulation, and windows), energy performance contracting, CRA redevelopment
- LEED-certified buildings
- Green/energy-efficient buildings
- Residential apartment buildings
- Public buildings
How Do You Qualify Based on Your Industry?
The 179D Tax Deduction is for Architects, Engineering Firms, Commercial Building Owners, and Construction Firms. This deduction is especially profitable for renovation projects, usually performed by these professional teams.
Qualifying Energy-Savings Are All Around You
It can be difficult to figure out if your building’s energy efficiency improvements qualify for this deduction. National Tax Group makes it easy with an in-depth study of your project and how it qualifies.
EPAct 179D studies are applicable for the following:
- New construction of commercial buildings
- Upgrades, renovations and retrofits, improvements to lighting, HVAC, envelope (roof, insulation, and windows), energy performance contracting, CRA redevelopment
- LEED-certified buildings
- Green/energy-efficient buildings
- Residential apartment buildings
- Public buildings
We are excited to announce that after years of legislation
179D & 45L have been extended
Lighting
Interior & Parking Garages
.60¢ Per Sq. Ft.
HVAC
Heating, Cooling, Ventilation and Hot Water
.60¢ Per Sq. Ft.
Building Envelope
Envelope Systems, Windows, Doors, Roofs and Insulation
.60¢ Per Sq. Ft.
80,000 X $1.80 = $144,000
179D Qualification Requirements
179D Qualification Requirements
| Properties Placed in Service 2023-2032 | ||||
|---|---|---|---|---|
| Project Tier | Bonus Requirements | Energy Savings | Base Deduction | Max Deduction |
| Base Tier | None | 25-50% | $0.50/sqft | $1.00/sqft |
| Bonus Tier | Prevailing Wage and Apprenticeship Program | 25-50% | $2.50/sqft | $5.00/sqft |
| Properties Placed in Service 2006-2022 | ||||
|---|---|---|---|---|
| Qualifying Components | Estimated Tax Deduction | |||
| Before 2021 | 2021 | 2022 | ||
| Fully Qualified Property | $1.80/sqft | $1.82/sqft | $1.88/sqft | |
| Partially Qualified Property | Envelope | $0.60/sqft | $0.61/sqft | $0.63/sqft |
| HVAC | ||||
| Lighting | ||||
How Do You Qualify Based on Your Industry?
The 179D Tax Deduction is for Architects, Engineering Firms, Commercial Building Owners, and Construction Firms. This deduction is especially profitable for renovation projects, usually performed by these professional teams.
Qualifying Energy-Savings Are All Around You
It can be difficult to figure out if your building’s energy efficiency improvements qualify for this deduction. National Tax Group makes it easy with an in-depth study of your project and how it qualifies.
EPAct 179D studies are applicable for the following:
- New construction of commercial buildings
- Upgrades, renovations and retrofits, improvements to lighting, HVAC, envelope (roof, insulation, and windows), energy performance contracting, CRA redevelopment
- LEED-certified buildings
- Green/energy-efficient buildings
- Residential apartment buildings
- Public buildings
GO GREEN, SAVE GREEN
179D is a tax incentive that is available for newly constructed or renovated buildings that have installed energy-saving elements. This tax deduction provides tax-saving benefits for commercial building owners, as well as architectural and design firms that have worked on projects for public agency-owned facilities.
Originally passed under the 2005 Energy Policy, the 179D tax provision allows a tax deduction of up to $5 per square foot for both new and existing buildings.