Are you prepared for Section 174 changes?
Manufacturers can now claim the full benefits of R&D expenses for day-to-day activities, such as designing new products, creating prototypes, or improving existing designs. With looming deadlines and stricter filing requirements businesses need to be prepared before they file their returns.
SCHEDULE A MEETING WITH EXPERTS
Are you prepared for Section 174 changes?
Manufacturers can now claim the full benefits of R&D expenses for day-to-day activities, such as designing new products, creating prototypes, or improving existing designs. With looming deadlines and stricter filing requirements businesses need to be prepared before they file their returns.
SECTION 174 FIX IMMINENT!
New administration is adamant on extending TCJA and fixing section 174. Manufacturers can now claim the full benefits of R&D expenses for day-to-day activities, such as designing new products, creating prototypes, or improving existing designs.
Book a meeting with us to secure your benefit before time runs out.
SCHEDULE A MEETING WITH EXPERTS
Success Stories
AUTOMATION & MEASUREMENT INSTRUMENTATION MANUFACTURER
R&D CREDIT VALUE:
$795,000
ANNUAL REVENUE:
$23 Million
TOOL & SCREW
MANUFACTURER
R&D CREDIT VALUE:
$400,000
ANNUAL REVENUE:
$17.5 Million
CONTRACT MANUFACTURER
R&D CREDIT VALUE:
$100,000
ANNUAL REVENUE:
$63 Million
Legislative Updates from our Former IRS Commissioners, U.S. Congress members and Senate Finance Counsel
Our new legislative update page highlights relevant national updates, including those made to Section 174–that you might have missed. We’re continually gathering information on these developments that could impact American businesses like yours. No hype, no fluff, just straightforward insights to keep you informed.
Day-to-day Manufacturing Activities that Qualify for the R&D Credit:
- Introducing new or improved efficiencies to a wide range of manufacturing operations
- Designing and developing automotive parts and components
- Conducting first-article test inspections and scrutinizing parts to maintain quality assurance
- Simulating design concepts with CAS/CAD, technical surfacing, Class-A modeling and more
- Overcoming regulatory compliance challenges and exceeding safety requirements
- Developing software to manage workflow, traceability, quality control, supply chain and more
- Automating manufacturing operations with CNC machines, robotics, sensors and other industrial control systems
Day-to-day Manufacturing Activities that Qualify for the R&D Credit:
- Introducing new or improved efficiencies to a wide range of manufacturing operations
- Designing and developing automotive parts and components
- Conducting first-article test inspections and scrutinizing parts to maintain quality assurance
- Simulating design concepts with CAS/CAD, technical surfacing, Class-A modeling and more
- Overcoming regulatory compliance challenges and exceeding safety requirements
- Developing software to manage workflow, traceability, quality control, supply chain and more
- Automating manufacturing operations with CNC machines, robotics, sensors and other industrial control systems
Research Tax Credit — Elections Bring Relief on Amortization
The upcoming administration is expected to bring relief from the current R&D amortization requirements, potentially reverting to immediate expensing of research costs.
These Section 174 changes, anticipated in early 2025, would significantly benefit small and medium-sized manufacturers by reducing tax burdens and encouraging innovation.
“Businesses should bear in mind that the statute of limitations will soon be here on being able to apply for the research and development tax credit for 2021 – and will end up paying more on their next quarterly estimated payment.”
– Dean Zerbe,
Former Sr. Counsel to the U.S. Senate Finance Committee
R&D Tax Credit: Myths & Misconceptions
Don’t let these myths hold you back from claiming federal refunds that you deserve –
- The tax credit is only for companies that invent
something new or have research labs.
- Taking the R&D credit would increase my tax
liabilities & won’t help my bottom line.
- There will be tax reform, and the R&D credit
will go away.
- What about Section 174? It is not getting fixed
anytime soon.
- We should wait for the official legislative change
to start R&D study.
- R&D tax credit rewards businesses for the things they’re doing everyday to improve their products and processes.
- The R&D tax credit offers dollar-for-dollar reduction to taxable income, adding to your bottom line.
- The R&D tax credit is the largest PERMANENT
federal business incentive.
- The new administration has committed to fix
Section 174 within the first 100 days in office.
- Failing to claim for previous years right away may
result in lost refunds.
alliant Advantage
We are 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 40,000 businesses.
1000+ 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.
FORMER POLICYMAKERS
Our team of former policymakers brings a deep understanding of tax law and its business applications, putting them at the forefront of Section 174 discussions.
This enables us to offer clients advice that considers both current and future tax legislation.
Five Former IRS Commissioners
Our strategic advisory board, which includes former IRS commissioners, brings preeminent expertise on IRS policy and ensures our practices align with the newest guidance.
No other firm offers this level of oversight.
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We’ll discuss your eligibility and help estimate your potential tax benefit.