KBKG can help you quickly identify if you are a candidate for several key tax credits and deductions. Please fill out the following form(s) to determine your eligibility for these commonly overlooked tax saving opportunities:
Research & Development Tax Credit
The R&D Tax Credit is for any company that spends time developing new, improved and more reliable products, software, processes, and formulas. The credit is worth roughly 10% of total qualified R&D expenses and many states also offer R&D tax credits.
Example: Client has $500k/year of wages related to R&D = $50k in gross credits per year.
Our calculator can give a quick and easy estimate on Federal and State R&D Tax Credit your client could be entitled to.TRY IT NOW
Our calculator is another way to offer value-added solutions for your clients, offsetting payroll tax by claiming R&D tax credits.TRY IT NOW
If you have purchased, constructed, or remodeled a building in the last 15 years and spent more than $750,000, a Cost Segregation Study could benefit you. The net present value is roughly 5% of total building cost.
Example: $2M office building (no land) = net present value of $100K
The Cost Segregation Savings Calculator estimates your federal income tax savings from a cost segregation study. It provides estimated allocations to each asset class and shows tax savings by year. Enter your building details and instantly receive a detailed report showing your potential tax savings.TRY IT NOW
The Residential Cost Segregator™ is an online software program that allows CPA’s to generate custom reports in just minutes, providing tax benefits to clients without hiring a specialist. The software is available for residential rental properties up to 6 units with a depreciable tax basis of $600,000 or less (purchase price less land).PREVIEW YOUR BENEFITS
A Condo Tax Basis Allocation Study for mixed-use projects uses engineering based techniques to maximize cost allocations toward the residential condominiums, thereby lowering taxable gains when each unit is sold. Consider hiring a Certified Cost Segregation Professional (CCSP) to perform this type of analysis for any mixed-use condominium development project over $5 million.
IRC 45L - Energy Credit for Residential Developers
If you have constructed or substantially renovated an apartment, condominium, or single family residence development of 20 units or more since 2006, you could be eligible for the Section 45L Energy Tax Credit, yielding $2,000 per dwelling unit.
Example: 100 unit apartment/condo = $200,000 of federal tax credits
IRC 179D – Energy Incentive for Commercial Buildings, Architects, and Designers
IRC 179D - Energy Deductions for Commercial Buildings Owners
If you have constructed or substantially renovated any commercial property since 2006, you could be eligible for the Section 179D Energy Efficient Commercial Buildings Deduction, yielding up to $5 per square foot in deductions.
IRC 179D - Energy Deductions for Architects and Designers
If you have implemented energy efficient designs for government-owned buildings, such as public schools, airports, courthouses, and libraries since 2006, you could receive a tax deduction of up to $5 per square foot.
Example: 100,000 sq. ft. building = $180,000 in deductions
If you have spent significant dollars on capital improvements to your building, you are eligible for a partial disposition deduction on the components removed.TRY IT NOW
California Competes Tax Credit
California offers a state income tax credit for growing businesses. The business must have expansion plans to create jobs in California over the next five years or be at risk to leave California. The tax credit award process is a four part program with a quantitative analysis phase, a qualitative analysis phase, a negotiation phase and a committee hearing.
Cross-border transfer prices drive how much income tax a multinational company pays by country. Transfer pricing (TP) regulations apply to the intercompany prices of goods, services, royalties, and loans across all industries. Every $1M increase in TP = $90K in tax savings annually.
Example: US company (21% tax rate) selling to a foreign subsidiary (30% tax rate), increases TP in order to raise US profit and lower foreign taxable income. A $1 million increase in goods, royalties and/or service charges to subsidiary in a 30% tax jurisdiction yields income tax savings of $90,000 annually (30%-21%) x $1m.
IC-DISC Federal Export Tax Incentive
Benefits are available to qualified producers or distributors that are either directly involved in exporting, or selling products to distributors or wholesalers who resell for use outside of the U.S. This includes traditional manufacturers as well as those who grow agriculture products, extract minerals, distribute U.S. made goods, and develop software. Engineering and architectural services related to foreign construction projects are also included.
The IC-DISC provides significant and permanent tax savings for producers and distributors of U.S. made products used abroad. Determine if an IC-DISC can benefit your company by trying our free calculator now.TRY IT NOW
Employee Retention Tax Credits
The Employee Retention Tax Credit (ERTC or ERC) was created as part of the CARES Act to encourage businesses to continue paying employees by providing a credit to the eligible employer for wages paid to eligible employees. The refundable credit is available from March 13, 2020 through September 30, 2021 and can be utilized even if companies received PPP loans. Businesses that started up after February 15, 2020 are eligible for up to $100,000 of credits on wages paid from July 1, 2021 through December 31, 2021.
The Employee Retention Tax Credit (ERTC) was created as part of the CARES Act to encourage businesses to continue paying employees by providing a credit to the eligible employer for wages paid to eligible employees.