R&D Credits & Incentives

Fuoco Group's R&D professionals have helped hundreds of companies, in virtually every industry, claim - and sustain on exam or at appeals - of these R&D benefits:

Tax Benefits

  • R&D credits and deductions (sometimes available for the same dollars in two, even three countries)
  • Investment credits
  • Tax exemptions or holidays
  • Accelerated depreciation
  • Training incentives


Non-Tax Benefits

  • Cash subsidies and grants
  • Government-sponsored centers/programs
  • No- or low-interest loans
  • Reduced red tape

Federal Research & Development Tax Credits
The Research & Development (R&D) Tax Credit is a federal tax incentive intended for businesses of all types and sizes to conduct applied R&D within the U.S. that will lead to new, improved, or technologically advanced products, processes, principles, methodologies, or materials. A tax credit can be used to offset income tax liabilities on a dollar-for-dollar basis, thereby lowering a company’s effective tax rate and increasing cash flow. Recently, the criteria for qualifying for R&D tax credits have been redefined, becoming more lenient to now include a larger group of businesses. In fact, a company may qualify if it has simply invested time, money, and resources toward the advancement and improvement of its products and processes.
The Federal R&D tax credit (in Sec. 41) is a 20% incremental credit on qualified R&D expenses that exceed a base amount or a 14% incremental credit under the alternative simplified credit regime. Due to the federal credit’s incremental nature (where only qualified costs over a base amount are eligible for the credit), the maximum federal benefit is often 6.5% of qualified R&D expenses
.

State Research and Development Tax Credits
State R&D incentives play an important role in the states’ ability to compete for and attract new investments and jobs. Numerous states have recently enhanced R&D incentives—giving more options to taxpayers looking to invest further in R&D or even relocate some expenses to a more taxpayer favorable jurisdiction. Many state governments reward taxpayers with income tax credits for increasing R&D spend. In some states, companies may take a credit against their state income or franchise tax equal to a percentage of their qualified R&D expenditures over some base amount (the credit typically can be carried forward or backward for a specified number of years). States generally use the federal definition of qualified R&D in their tax codes. Some states have refundable R&D tax credits. The most transparent component of the value of a state's tax credit is the credit rate.
These credit rates currently range from a low of 1% to a high of 20%, equivalent to the federal rate. A number of states offer different credit rates for different levels of R&D spending, typically with the rate lower for higher tiers of R&D (in order to provide greater incentive to small businesses and start-ups to perform R&D).

 

In The News

The New York Real Estate Journal recently featured a "Ones To Watch" Spotlight, focusing on both up and coming professionals as well as industry veterans across all areas of real estate. Congratulations to Lou Fuoco CPA, CEPA, for being included in this prestigious group of “OTW” for 2019!
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Press and Events

Scott Small, CPA, has recently joined the Fuoco Group accounting and business advisory firm as Audit and Accounting Senior Manager in the Hauppauge office. In his position, Scott will assist the Directors in New York and Florida with expanding the Firm’s accounting and assurance practice. His duties will also include client relations, workflow management, research and staff training.
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TFG Financial Advisors Announces New Michigan Office and Financial Professionals
North Palm Beach, FL, (May 8, 2019) - TFG Financial Advisors and The Fuoco Group are proud to announce they have opened a satellite office in Plymouth, Michigan, in order to expand the TFGFA geographic footprint.
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