The US Treasury supports businesses across the Green Mountain State with tens of millions of tax dollars each year. Did you get your share?
Agriculture, production and manufacturing are some of the largest industries in Vermont state. While each of these industries are different, what they do have in common is that they can all leverage their everyday activities to receive a substantial dollar-for-dollar return through the R&D Tax Credit. Unfortunately, many businesses do not know that what they do day in and day out can translate to huge tax credits.
The state of Vermont provides significant tax credits for companies improving processes or products within its borders – and your company could be one of the businesses to reap the benefits.
Vermont’s R&D Program – What Businesses Should Know
Vermont’s Research and Development tax credit is modeled off of the US’s federal program. In fact, a prerequisite of obtaining the Vermont state tax credit is to be qualified for the federal R&D credit.
According to the Vermont state website, the Vermont credit can be taken in an amount equal to 27% of the federal tax credit for the corresponding taxable year. This credit applies to personal income tax or business or corporate income tax.
How Do I Know if I Qualify for Vermont’s R&D Tax Credit?
To claim both the state and federal R&D credits, your company must be a C-Corporation, S-Corporation, LLC or Partnership that performs Qualified Research Activities (QRAs). To be deemed a QRA, business activities must pass the IRS’s 4-Part Test.
Qualifying R&D Activities Include:
- 3-D printing
- Designing and testing prototypes
- System software development
- Creating new formulas to ensure shelf life longevity
- New agricultural product development
- Designing and improving manufacturing processes
What is the First Step?
The first step you can take to receive your credit is to call a qualified tax group. Pairing up with experienced tax professionals makes the task of gathering proof of qualified research expenses, compiling past federal taxes and assembling additional paperwork that much easier.
At National Tax Group, we help you tackle the process of qualifying for this credit. Hand in hand, we guide you through the process of receiving your credit so you can increase your potential cash flow as soon as possible. Give us a call at (561) 257-3436 for your free qualification assessment.