Is Your Company Part of the 2% or the 98%?
Research & Development Tax Credits

On March 15, 2007, The Pennsylvania Department of Revenue Bureau of Research published a Report to the Pennsylvania General Assembly on the Research and Development (R&D) Tax Credit.
 
This report indicates that less than 2% of Eligible companies in Pennsylvania are taking advantage of this credit.  Only 379 companies are taking advantage of the R&D tax credit when 20,000 companies are eligible! 
 
Your company may have qualifying activities, and you could be missing out on a great opportunity! Qualifying Technical Activities include, but are not limited to:

• Manufacturing, Fabrication, Engineering
• New Product Development or Improvement
• Process Development or Improvement
• Developing New Concepts or Technologies
• Design – Layout, Schematics, AutoCAD
• Prototyping or Modeling
• Developing Innovative Inventions
• Testing or Quality Assurance Systems or Certification (ISO 9000, TS 16949, UL, 6 SIGMA)
• Lean Manufacturing Initiatives (Toyota Production System)
• Integration of New Machinery (CNC, SLA, SLE, etc) into existing process.
• Software Development or Improvement
• Automating or Streamlining internal process using technology
• Developing tools, molds, dies.

Mr. CostSaver partners with a specialized tax consulting firm comprised of IP Attorneys and engineers that works with the IRS and CPA firms to qualify manufacturing companies for government sponsored tax credits in accordance with IRC Section 41. This government sponsored initiative is authorized under IRC Section 41 for which they produce the necessary Calculations and Engineering Report to capture the benefits of this program. They are certified by the National Association of State Boards of Accountancy (NASBA) to provide CPE to CPA’s nationally.

 
Why is your CPA not having you take these tax credits already?

They are not at fault!

• First and foremost, the misconceived definition of R & D which Congress liberalized in 2001. It went into effect in 2003 and enabled small and mid-size companies to take advantage of these tax credits.
• Secondly, the most prestigious CPA firms do not maintain the necessary hard science and legal (engineering and intellectual property) backgrounds required to both qualify and quantify the credit amounts and must outsource the technical reporting to firms like our partners.

What is the next Step?
Allow Mr. CostSaver to schedule a 20-30 minute conference call to go over a qualification checklist and determine how this program can best fit your company. 
 
If you have any questions or would be interested in scheduling a conference call, please send your request using the Question Form on the right side of this page.