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"I am amazed how many manufacturers do not realize or understand the IRS's definition of R&D Tax Credits.
If you make or improve a product or process, either for yourself or your, customer, you have activities that qualify for the R&D Tax Credit.
This credit can substantially reduce your Federal and State tax liability."
Benjamin Rashleger, Retired President, WSI Industries, Monticello, MN
“We don’t really do any R&D here, we’re a manufacturer.”
“The Black Line Group’s manufacturing expertise was critical."
All 4 Criteria Must Be Met for an Activity to Qualify
Activity is intended to develop or improve a product, process, or technology:
Functionality
Performance
Quality
Reliability
Cost Efficiency
Uncertainty in achieving goals in terms of:
Methodology
Appropriate Design
Capability (Less Common)
Evaluation of Alternatives
Prototypes
Testing
Modeling (Such as CAD)
Simulation
Systematic Trial and Error
Activity must rely on the principles of one of the following sciences:
Engineering
Computer
Physical
Biological
“The reason we feel that the R&D Tax Credit is important is simple — it saves us money. This is money we can reinvest back into our business. We have been extremely satisfied with Black Line Group’s services. They make the process relatively easy and have contributed to the reduction of our tax liability. After three consecutive years of engagement, we can confidently say that they are the experts in the R&D tax credit field.”
“Our company has worked with Black Line Group and filed for an R&D Tax Credit since the 2010 tax year. We had filed for this credit in the past but got away from using it for several years until engaging Black Line Group. It is a detailed process that Black Line Group has a great deal of experience in, and not something we would have been successful in doing ourselves. We know and hear from other NTMA members that there has been a lot of concern regarding audits by the IRS in regards to companies that file for this credit. In most of the instances of an audit, it was a result of trying to go back and amend prior year returns. In our case, we chose not to go back and amend, but to simply claim credits for the current tax year and beyond."
“We would like to say thank you for the great service we received from Black Line Group regarding the R&D Tax Credit Study you performed for us earlier this year. We noticed your booth at the NTMA conference in Colorado and realized it was time to get started on identifying and tracking our R&D efforts. LeanWerks is a production manufacturing facility and Black Line was able to help us identify all of our qualifying expenses for three years via a smooth and organized process. In addition, the documentation was provided for our tax accountants to immediately begin the amendment process without any further work on our part. The fee for this R&D service was fair and it more than paid for itself in credits. We received substantial federal and Utah state tax credits to apply to previous taxes and/or carry forward for future years. We would highly recommend the Black Line Group to other companies! We look forward to seeing you at the NTMA conference next year! Thanks again!”
“I would like to take a moment to thank you for the experience we had with Black Line Group. R&D tax credits are very important to organizations like ours. Custom m
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