NOT YOUR AVERAGE TAX SAVINGS: DON'T MISS OUT ON WHAT HAS BEEN HIDING IN PLAIN SIGHT.

• Author: Spillner, Joe

We've all heard the phrase, 'You can't have your cake and eat it too,' right? Well, we're here to tell you that you can and you'll never guess how. Surprise--it's your taxes! The research and development ("R&D") tax credit remains one of the most powerful yet overlooked tax saving incentives for companies of all shapes and sizes. When people hear the phrase "research and development," they immediately picture scientists in their white coats pouring chemicals from one beaker to the next. However, the benefits of the research and development tax credit expand far beyond this stereotype.

Made permanent in 2015, the R&D tax credit allows taxpayers to take a dollar-for-dollar tax credit in addition to having already taken a tax deduction for their qualifying R&D expenditures. Generally, that tax credit is equal to approximately 6-8% of the qualifying R&D spend during the tax year. For example, if a taxpayer spent $500,000 as qualified R&D expenses, they could not only deduct the $500,000 of expenses against their income for the year, but also potentially claim a dollar-for-dollar tax credit of up to $40,000 to utilize against their respective tax liability. Don't have any tax liability in the tax year to offset? No problem! R&D credits that are not utilized are carried forward 20 years...