Advertising in MoldMaking Technology offers
Issue link: https://mmt.epubxp.com/i/111447
Your Business r&D; tax Credit extension Means Savings for Moldmakers By Scott Schmidt With the Fiscal Cliff now behind us, moldmakers can continue to benefit from the Research and Development (R&D;) Tax Credit. The research tax credit has a long history of almost seamless extensions since its inception in 1981, and was recently once again extended through December 31, 2013 with the passage of the American Taxpayer Relief Act of 2012. The purpose of the credit is to provide incentive to U.S.based companies to encourage research and development (���R&D;���) within the U.S, and thus foster innovation that will keep the U.S. at the leading edge of technology. The R&D; tax credit provides dollar for dollar credits to companies for spending R&D.; However, the credit is often overlooked, Effective use of the R&D; especially in the contract Tax Credit in the mold manufacturing environment, manufacturing industry such as mold manufacturing. Because they typically don���t includes understanding have their own product line what activities qualify, and are making parts for other identifying everyone in a companies, it���s widely believed company that is touching that moldmakers do not perform R&D.; However, what R&D; (it���s not just the mold these companies don���t realize designers) and how much is that much of what takes place on a day-to-day basis time they are spending may qualify for the R&D; Tax on these activities. Credit. Many moldmakers leave money on the table that could potentially mean the creation of immediate and substantial amounts of cash, minimally into the many tens of thousands of dollars annually. R&D; doesn���t just take place in a lab with scientists in white coats. At a high level, activities associated with developing and/or improving a product or process can qualify for the R&D; Tax Credit. In the mold manufacturing environment, much of the R&D; taking place will be mold tool development or process development. Often design for manufacturability, the design of the mold tool, and the design of the overall process will be required. All of these areas have high potential for R&D.; The key thing to understand about the R&D; Tax Credit in the moldmaker environment is that it���s okay to be confident that you can meet a customer���s request. You only need to be unsure HOW to meet those objectives, such as what gating configuration, cooling lines, materials, etc. Additionally, research and development can also be taking place when 10 MoldMaking Technology March 2013 you are improving your manufacturing processes through automation and technology. Effective use of the R&D; Tax Credit in the mold manufacturing industry includes understanding what activities qualify, identifying everyone in a company that is touching R&D; (it���s not just the mold designers), and how much time they are spending on these activities. Being able to document the projects and time allocations of people is also an important aspect for successfully claiming R&D; Tax Credits. Finally, understanding when you are no longer doing R&D; is equally important. Once you have figured something out and are ready to go to production, that���s when the R&D; stops. With tax season upon us, now is a great time to evaluate whether your company would benefit from the R&D; Tax Credit in a meaningful way. contributor Scott Schmidt - Principal, founded Black Line Group in 2003 to educate and assist companies through the process of successfully applying for the R&D; Tax Credit, the ���rm���s sole focus. He has presented information on the R&D; Tax Credit for trade associations across the country and has authored numerous articles on the topic. He earned his Bachelors Degree with a major in Economics from the University of Minnesota. Scott also co-founded, and is the co-chairman of the National R&E; Roundtable���a cooperative effort among providers of R&D; Tax Credit services from across the country that includes both middle market CPA and specialty R&D; Tax Credit ���rms. For more inFormation: black Line Group / (763) 550-0111 scott@blacklinegrp.com / blacklinegrp.com