Find Tax Savings and Deductions to Better Your Financial Health

Tax credits and deductions exist to help organizations operate more efficiently. The problem is knowing they exist, and if you even qualify.

Manufacturing and construction entities in particular have several opportunities to benefit from tax credits and deductions throughout the lifecycle of their projects, innovation and growth. The potential benefits could be substantial, but the confusion can be crippling.

Don’t leave money on the table when it comes to your upcoming project and the overall health of your business.

What types of tax credits are there?

There are several types of tax credits and deductions to choose from. Each has a slightly different set of qualifications and benefits based on the type of project an organization is undertaking.

For manufacturing and construction entities specifically, there are three important types of credits and deductions to consider:

  • Research & Development Tax Credits
  • Cost Segregation Studies
  • Energy Efficiency Deductions (179D)

Here are a few questions to consider as you work to keep your organization in top financial shape:

Are you developing something new or improving existing processes?
Research & Development (R&D) tax credits are designed for companies that are continually improving their existing products or services. It can also be used for investment into the development of new ideas.

R&D tax credits may benefit your organization if:

  • You are developing new products or improving existing processes. Learn more about the four-part test to see if you qualify.

The Impact of R&D Tax Credits
A manufacturing company (specifically, industrial and agricultural material handling equipment) was working on a new product design as well as enhancement and overall process improvements. Eide Bailly’s R&D Tax Incentives team helped the company take advantage of qualifying credits for these activities, with a result of $265,000 – $450,000 combined federal/state credits each year.

Don’t leave money on the table. See how the R&D tax incentive could benefit you.

Are you looking to save money or increase cash flow?
Fixed asset planning is a great way to identify potential deductions that can both maximize your cash flow and reduce your tax liability.

Will your company benefit from fixed asset planning?
A few of our professionals recently put together a webinar discussing the importance of fixed asset planning when it comes to your tax strategy.

Cost segregation is a key component of fixed asset planning. Cost segregation studies help taxpayers accelerate depreciation deductions. This reduces the amount of taxes paid and increase potential cash flow for your organization. Learn more about the potential benefits.

The Impact of Cost Segregation Studies
A real estate entity of a painting supply manufacturer had recently built a 272,350 square foot manufacturing and distribution facility, and their construction costs totaled $16 million. Eide Bailly’s Fixed Asset Services team worked through the complexities of the multiple placed-in-service dates and completed a cost segregation study that resulted in a $3,200,000 deduction in 2018 as well as an $800,000 deduction in 2019.

Don’t leave money on the table. See how the R&D tax incentive could benefit you.

Are you building or updating an energy efficient facility?
Another key tax credit within fixed asset planning are energy incentives. These tax credits are specifically designed to promote renovation or construction of energy efficient facilities.

There are two different tax credits available for entities who construct or improve their structure’s energy efficiency.

  • 179D is an energy efficiency deduction for building owners who either increase their building’s energy efficiency or construct an energy efficient facility. Learn more.
  • 45L provides a tax credit of up to $2,000 for qualified residential dwelling units built with energy-efficient technology. Learn more.

Don’t leave money on the table. See how the R&D tax incentive could benefit you.

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Get started today.
The amount and nature of tax credits and deductions can be confusing and time consuming. But the potential tax-saving opportunities can dramatically impact your organization’s financial health. Don’t let confusion stop you.