One-Minute Tax Update: How The R&D Tax Credit Can Help Business Owners During This Crisis.

Transcript:

Julio Gonzalez 0:06
For the Engineer Tax Services with the One-Minute Tax Update, I know a lot of businesses are suffering. But we have tax code that will help in these circumstances. One is the research and development tax credits, which really is a benefit to employers here in the United States that employ US citizens to do us labor. So this is really labor that's innovative, that's doing something innovation within a company. So that could be software, it could be manufacturing, it could be design, but it's an incentive to basically give you at the end of the year, these credits these refunds against wages, which can be up to 12%. And sometimes the state matches it. And most, you know, small companies, small businesses don't take advantage of us. And so at the end of the year, they pay the taxes. They go to the next year. But there's labor that you have likely that does innovation that's making you know your software better your product better, your, you know, your manufacturing quicker. It could be an agriculture, it could be in any kind of manufacturing, it could be in design, architecture and engineering. And again, you have to take advantage of this. So we work with your CPA firm, to determine the labor amount that you pay to your employees that is involved in innovation. And then we calculate the amount of that credit which again, is basically a cash or cash refund of labor, that will benefit you and we can go back on that three to four years, depending on when your last tax filing is so that can be helpful and can be a way to for you to find some money that is kind of sitting there at the IRS just waiting for you. So that's our one minute tax update. And we'll bring you every day these tax updates. To help the small businesses more than ever, find incentives and benefits to keep the doors open. Thanks

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