for the R&D Tax Credit
below and one of our R&D Tax Credit experts will contact you.
Qualify for the
R&D Tax Credit
PRODUCTS AND PROCESSES
R&D Tax Credits for the Chemical & Formula Industry
Refunds are available for companies performing research within the Chemical & Formula Industries. The research credit provides dollar-for-dollar cash savings each year for companies performing activities related to the development of new or improved products and processes. These benefits could provide much needed cash to hire additional employees, increase R&D, expand production facilities, etc.
Many companies involved with chemicals & formulas are unaware that their efforts within designing and developing their products can yield a large amount of research credits. Examples of R&D activities related to the industry as well as potentially qualifying job titles are listed below.
Examples of Qualifying R&D Activities
- Automation of internal processes by developing and implementing new hardware and software systems
- Development and evaluation of new, improved, or more reliable raw materials, products, or formulas
- Experimentation to increase product yield, improve shelf-life, or discover new applications for existing chemicals
- Generating pilot batches of new products for testing and validation
- Refining manufacturing methods to improve efficiency or reduce environmental impact
- Support of direct research activities, such as quality testing, maintaining lab equipment, data collection, and regulatory compliance work
Potentially Qualifying R&D Job Titles
- Analytical Chemist/Scientist
- Chemical Engineer
- Formulation Chemist/Scientist
- Lab Assistant, Lab Technician
- Quality Assurance/Control (QA/QC) Analyst, Associate, Chemist/Scientist, Manager
- Research Associate, Research Scientist
For tax years beginning after December 31, 2015, eligible small businesses (those with $50 million or less of gross receipts) may claim the research credit against AMT liability.
Up to $250,000 in Payroll Tax
Qualified start-up companies may elect to use up to $250,000 of the research credit against payroll taxes. Treasury Regulations have substantially broadened the range of taxpayers who are eligible for the credit. Start-ups to publicly traded businesses who were previously unable to realize a benefit from this lucrative tax credit should reassess their eligibility.
Estimate Your Benefits with our FREE Calculators
Use our calculators for an estimate of state and federal R&D tax credit benefits or to determine if you can offset payroll tax using the R&D tax credit. It's easy to use and free. If at any time you have questions, contact us. We are here to help you realize your maximum tax benefit.
Get a Free Download of this Research & Development One Pager
Research and Development Tax Credit Insights
An Introduction to the Reverse Plea to the U.S. Senate and House of Representatives to Extend Section 174
Over 150 U.S.-based businesses and trade associations recently issued a plea to the U.S. Senate and U.S. House of Representatives leadership urging Congress to extend Section 174 provisions allowing taxpayers to deduct 100% of Section 174 R&E expenditure in the year they were incurred. Historically, 100% of Section 174 R&E expenditures could be 1) deducted … Read More
Looking for CPE credit? We have several sessions available this month. Click the links below to register. If you have questions or need help registering, please email [email protected] Research & Development Tax Credits 11/1/2022 | 12:00 PM PT | 1 hour | 1 CPE credit This webinar will cover the fundamentals of the Research and … Read More
The Inflation Reduction Act provides huge opportunities for the real estate industry as well as for architects and engineers. However, the expansion of “green” tax incentives 45L and 179D is not the only tax benefits getting a boost. The newly formed law will also improve upon the R&D Tax Credit. This change will have a … Read More
Published on June 10, 2022, Texas Register, the Texas Comptroller proposed revisions to the recently amended Texas franchise tax regulations surrounding the Texas sales and use tax exemption and the Texas franchise R&D tax credit. These revisions soften the Internal Use Software (IUS) and Combined Group definitions after receiving overwhelming feedback surrounding the Texas franchise … Read More
It has been nearly 18 years since Missouri taxpayers have seen a state credit related to its qualified research expenditures (QREs). This may change beginning in 2023! In an effort to further stimulate Missouri’s economy, State Senator Brian Williams offered an amendment to HB 2400 sponsored by State Representative Dan Houx. This amendment attempts to … Read More
KBKG, R&D Tax Credits & 179D Incentives Firm, to Exhibit at the American Institute of Architects A’22 National Conference This Week
KBKG plans an educational and interactive booth experience for architect attendees at AIA’s largest annual event. CHICAGO, June 20, 2022 (Newswire.com) – Nationwide tax specialty firm KBKG is set to exhibit at the American Institute of Architect’s (AIA) A’22 Conference on Architecture in Chicago from June 22-25. At the exhibit, KBKG will showcase their architect … Read More
Are you looking to upgrade your R&D credit or 179D provider? As you begin to evaluate potential service providers, it’s important to remember that there are significant differences between R&D credit and 179D advisors in the marketplace. Sometimes taxpayers are not immediately aware of how those differences may impact their experience from start to finish. … Read More
Our Director of R&D Tax Credits and ERTC, Bill Taylor is speaking at the TXCPA Free Expo on June 23rd. Along with him, our Regional Director, Matthew Geltz, is representing KBKG at the exhibit hall. The TXCPA Free CPE Expo is taking place on June 23rd at the UT Commons Conference Center in Texas. About … Read More
Our CEO, Gian Pazzia is attending the PrimeGlobal Partner Leadership Summit as a delegate. Along with him, our National Director of Business Development, Gina Lim, is sponsoring the event on behalf of KBKG. The conference is taking place from June 20th to June 22nd at the Fairmont Royal York in Toronto, Canada. About PrimeGlobal Partner … Read More
This year Todd French, Lon O’Connor, Robert VanDeVeire, Brandon Val Verde, and Kyle Ernsberger will be representing KBKG at the AIA Architecture Conference. The conference takes place from June 22nd to June 25th in Chicago, Illinois. About the AIA Architecture Conference The AIA Architecture Conference is the architecture and design event of the year. With … Read More