Are you a Software or Technology Company feeling the financial strain of current tax changes?
The Challenge: Increased Tax Payments under Section 174
Software and technology companies are facing a significant financial burden due to changes in Section 174 of the tax code. This provision now requires the amortization of R&D expenses over five years, rather than allowing them to be expensed immediately. The result? Increased taxable income and higher tax payments.
The Solution: Leverage the R&D Tax Credit
The good news is, the R&D Tax Credit can offset these increased tax liabilities. By identifying and claiming your qualifying research activities, you can significantly reduce your tax payments and reinvest in your business.
alliantgroup can help! Schedule time to meet today.
Why the R&D Tax Credit?
Immediate Savings
Lower your tax bill this year.
Boost Innovation
Free up capital to invest in
new projects.
Stay Competitive
Keep your edge in a fast-paced industry.
Find Out If You are Eligible
Let our tax credit consultants evaluate your business and help you understand how this tax credit can genuinely benefit you.
How alliantgroup Can Help
At alliantgroup, we specialize in maximizing R&D tax credits for software and technology companies. Our team of experts will:
- Evaluate Your Activities: Determine which of your R&D activities qualify.
- Document Thoroughly: Ensure all necessary documentation is in place.
- Optimize Your Claim: Maximize your credit for the highest possible savings.
Don't leave money on the table.
With Section 174 impacting your bottom line, now is the time to act. Let alliantgroup help you navigate these changes and secure the tax savings you deserve.
Are you a software or technology company
feeling the strain of Section 174?
alliantgroup can help.
How is Section 174 impacting software and technology companies?
While Section 174 has always provided for full deductibility of R&D expenses, recent changes have required software and technology companies to amortize these expenses. This has challenged many such companies with tax bills greater than in years past.
So what options do I have?
With the impact of amortization on software and technology companies, the R&D credit is a powerful solution for offsetting increased tax payments affecting your bottom line. The credit was put into place to reward software and technology companies for their day-to-day activities, ultimately increasing growth and competitiveness. Work that you do every day, such as developing system architecture or writing code, can generate powerful refunds via this incentive.
How can I take action?
In our 20+ years of serving U.S. businesses, alliantgroup has secured this credit for tens of thousands of enterprises spanning multiple industries, many of which were unaware they even qualified for it. Our experts are ready to guide you through the new reality of Section 174 for software and technology companies, so you can determine the best way to preserve your hard-earned capital.
Book a meeting today
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ANNUAL REVENUE:
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WHITEPAPER
R&D | Providers Checklist
Please complete the form below to download the R&D providers checklist and find what will work best for your business
Importance of
- Retaining and attracting more technical talent;
- Growth strategy; and
- Remaining competitive.
The R&D Tax Credit was introduced in 1981 to increase technical jobs in America by encouraging businesses to invest in innovation. It is now the most significant permanent tax credit available. As the competition within the American marketplace continues to intensify, companies need to utilize every resource they can. This credit intends to support innovative industries, like semiconductors, so they can reallocate funds back into their businesses to help with the following:
Find Out If You are Eligible
Let our tax credit consultants evaluate your business and help you understand how this tax credit can genuinely benefit you.
Why software and technology companies
trust alliantgroup
Thousands of software and technology companies, from app developers to system integrators, have used alliantgroup to claim the R&D credit. With our turnkey process, you can expect a thorough evaluation of development activities and costs, leading to a maximized and substantiated credit. Additionally, our industry experts can guide you and your CPA through all facets of the credit, from documenting your claim to claiming your refund.
800+ IndustryExperts
Five Former IRS and Division Commissioners
FormerLegislators
Hear From Our Clients
The process of working with alliantgroup from start to finish proved to be well worthwhile for us. Our consultants were prompt, professional and guided us throughout the process with ease. As a direct result of their efforts, we were able to find additional funds that had been missing out on for years. Now with the excess cash, we will be able to reinvest into the growth of our business and increase our revenue.
Automation Software Developer
# of Employees:
72
Because of the R&D Credit and the value it provides to our company, we are able to have larger margins and invest in innovation and development even more. We highly recommend alliantgroup and their professional services to any company seeking to be rewarded for the work they are already performing.
Process and Controls Software Developer
# of Employees:
145
Additional Information
The Research and Development (R&D) tax credit continues to provide one of the best opportunities for U.S. businesses to reduce their tax liability substantially. Companies from almost all industries can qualify for this government-sponsored tax benefit just by performing their day-to-day activities. This government-sponsored tax incentive, as prescribed in 26 U.S.C. § 41, may be claimed by taxpaying businesses that develop, design, or improve products, processes, formulas, or software.
The credit was introduced in 1981 to increase technical jobs in America by encouraging businesses to invest in innovation. It is calculated based on the wages of the employees performing the qualifying work, making it the most valuable, permanent tax incentive available to American businesses. Furthermore, it can be claimed at the federal and state levels, with over 30 available state credits.
This works for businesses of all sizes, not just major corporations with research labs. What constitutes R&D concerning the credit is much more expansive than business owners realize.
Several factors go into claiming the research and development tax credit. Companies may claim the credit for both current and prior tax years, and documenting their R&D activities can help ensure that they are eligible to claim the credit for all open years.
Businesses need to continuously evaluate and document their research activities to authenticate the costs incurred for each qualified research activity. While some estimations may be involved, they must have a genuine basis for the assumptions used to create those estimates.
Examples of documentation include:
- Payroll records
- General ledger expense detail
- Project lists
- Project notes
- Documents produced through the normal course of business
These records, coupled with credible employee testimony, can form the basis of an R&D tax credit claim. Our comprehensive process can quickly identify and gather this information to substantiate your claim, ensuring you receive the total value you are entitled to under relevant I.R.S. guidelines and Treasury regulations.
Wage, supply, contractor, and computer costs are the major buckets that form the basis of an R&D credit claim.
Established in 1981, the Research & Development tax credit has gradually evolved, with new legislation, regulations, and judicial precedent expanding the number of businesses that can benefit from the credit.
The most impactful changes have occurred within the last two decades.
2003
With the removal of the Discovery Rule, a new and much more favorable standard was introduced, which stated that research activities no longer had to be “new to the world“ but only “new to the taxpayer. “
2015
The Protecting Americans from Tax Hikes (PATH) Act made the R&D credit permanent so businesses could rely on it every year!
Unfortunately, only one out of twenty small and medium-sized companies that are eligible for this credit take advantage of it. Here are some of the myths that hold them back:
- The tax credit is only for companies that invent something new.
- This benefit is for businesses with research labs.
- The credit won’t help me with my state taxes or bottom line!
- It’s too good to be true!
- There will be tax reform, and the R&D credit will go away.
We are the leading experts in tax credits and incentives. Since 2002, we have helped US businesses grow their operations and stay ahead of the competition. To date, we have delivered billions in refunds to over 27,000 businesses.
Industry Association Member
800+ Industry Experts
Our professionals know your business inside and out and know what qualifies to ensure the most lucrative refund. No other firm offers professionals versed in your industry.
Four Former IRS and Division Commissioners
Our former commissioners are the preeminent experts on IRS policy and ensure our practices and procedures align with the service’s expectations. No other firm offers this level
of oversight.
Former Legislators
Our former policymakers understand the intent of tax law and why they apply to your business. As part of our team, they advocate for our clients and help them take advantage of federal funds. No other firm understands tax law to this extent.
Why Businesses Choose alliantgroup
Watch our video to understand more about how alliantgroup has helped businesses claim the R&D.