Though today’s economy may be sluggish, now is a good time to invest in precision machining to improve products and processes; the fact of the matter is that the downturn has provided ample opportunities for expansion. There is a flurry of federal tax credits that can help businesses expand. Unfortunately, many business owners are simply not aware of the resources available. Here are some ways in which federal tax credits can help you improve upon your products and processes by giving you the cash you need to develop facility machining and other components of your business.
What is the Research and Development Tax Credit Program?
The research and development tax credit program was created by the federal government in order to give businesses of all sizes an incentive to invest in research and improve their products. Contrary to popular belief, the tax credit is not just for businesses with laboratories filled with scientists. In fact, any company that designs, develops, or improves products, processes, techniques, formulas, inventions, or software is eligible for the tax credit.
What are the Benefits of the R&D Tax Credit Program?
In today’s economic conditions, it is increasingly more difficult to find resources to invest. Many companies are having a problem simply breaking even, let alone investing in growth opportunities. The research and development tax credit program offers cash incentives to help businesses invest in their future and reach new levels of growth. For many companies, the tax credit provides an instant source of cash that they can invest. The tax credit works by providing actual credit against taxes owed or taxes paid. Furthermore, the tax credit creates a significant reduction in tax liabilities for current and future years.
If you are unsure whether you qualify for federal tax credits, there is no harm in inquiring. If you do end up qualifying, you will soon find yourself with new incentives to invest in research and development that will allow you to improve your machined products and bolster the economy. To learn more about how your business can gain a boost from federal tax credits, call C&M Machine Products at (603) 889-1330. If your business requires precision machine components in order to take full advantage of federal programs, we’re the company to contact.