How Manufacturers Can Use the R&D Tax Credit

Bottles of sunflower oil on an assembly lineThere's a 4-part test.

By Barry J. Friedman, CPA
IndustryNewsletters

Many manufacturing companies fail to take advantage of the generous research and development (R&D) tax credit simply because they don’t have staff working in a lab. The Internal Revenue Service’s (IRS) definition of R&D is codified at Internal Revenue Code Section 41 and its related regulations – and it may not be exactly what you think it is.

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From 2018 to 2027, the estimated value of R&D tax credits to be claimed by U.S. companies is estimated at $163 billion, with $148 billion of that going to corporations.

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Barry J. Friedman, CPA



About the Author

Barry J. Friedman, CPA, is CEO of IndustryNewsletters.

The accompanying article is one of the most popular among CPA firm clients in the IndustryNewsletters network, indicating strong client interest in the subject and potentially significant service opportunities for practitioners.

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Friedman brings more than 35 years of experience building and managing CPA firms, as well as digital marketing firms. Barry sold his regional accounting firm, Friedman & Fuller, to American Express and then created BizActions, LLC which became the first and most widely adopted email marketing service for CPA and payroll firms, which he sold to Thomson Reuters in 2012. Previously, he was the founder and CEO of GovCon where he developed an online electronic commerce community that brought together thousands of IT contractors and hundreds of government entities. He earned an MBA in Business Administration from Loyola College and taught Financial Management in that program for three years.

IndustryNewsletters is a powerful, easy-to-use digital marketing tool for professional services firms with a large and growing library of timely, relevant content. This robust platform includes an email newsletter service, OnTarget email blast tool, Social Sharing tool, Reporting, and more, to assist you in adding value for your clients and growing your business. 

 

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