Specialty Tax Credits

Specialty Tax Credits

Millions of tax refund dollars go unclaimed every year.

Are you eligible for some of these?

Specialty Tax Credits are just what they sound like – they are specialized tax incentives made available at the federal, state and local level to reward businesses and individuals for doing certain things these governmental agencies are trying to promote.  At the business level, some of the incentives are so obscure or misunderstood that many if not most companies are not aware they exist, or that they may already qualify for them.

With a myriad of programs designed to encourage businesses to do things like keep jobs here in North America, hire consistently across certain demographics, continue or expand upon research and development activities, take technological risks in order to compete in the domestic and global marketplace, go green and more, there is no reason you should not participate in the funds that are going directly back to company’s bottom line.

What You Don’t Know May Be Costing You!

I am always surprised by the number of clients who either were unaware of some of the credits they qualified for and the actual dollars that translated to for their bottom line, or knew about a particular credit and didn’t apply for it because they either thought they didn’t meet the eligibility requirements or couldn’t seem to find the time to do so.  The truth is, surprisingly few companies take advantage of available credits to which they are entitled.  And for companies that do take advantage of one or two of these credits, there are many more they may be eligible for that are not on their radar screen.

But once a company has experienced the benefit of receiving some tax credits the reality of how it affects their bottom line is immediately clear. With a dollar-for-dollar credit, a tax incentive can immediately increase cash flow.  It can also increase the value of a company and minimize future tax liability.

Outside Expertise Pays

Because of the specialized nature of the credits, they do not fall into the realm of expertise for 99% of CFOs and CPAs, who a company might mistakenly assume would already be claiming and optimizing such credits on behalf of the company, so getting help from an outside expert that specializes in these credits ensures that applications are filled out in a timely and correct fashion and that key opportunities are not overlooked.   In some cases, there are also state tax incentive programs that are a competition, such as California’s “Cal Competes tax credits”, so being aware of the incentives and putting in an application does not guarantee an award.

Specialty Tax Credits Require a Specialized Focus

There are also so many types of credits available across the federal, state and local level that being aware of them is really a full time job!  What we have put together is a team of experts for each specialized tax credit to make sure our clients are covered and we maximize their incentives.  This is important because with regulations changing from year-to-year and layers of credits available, to get the full advantage of these credits companies need an expert who can navigate through the many commonly held misperceptions.

For example, did you know that a software company whose software is downloaded from a server in the US by a company outside the US, or a software that is licensed for reproduction outside the US qualifies for an export incentive?

Or that distributors of US made goods that are eventually consumed or used outside the US are also eligible for an export incentive?

Or that testing new concepts, sourcing new raw materials or applying for patents qualify you for an R&D credit?

These are just a few examples of “what you don’t know may cost you”!  For any professionals curious as to what specialty incentives they may be eligible for, visit

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