R&D Tax Consultants – Boston (MA)
Boston (MA) business owners are constantly looking for new ways to improve profitability, reduce costs, and leverage new opportunities. In terms of cost reduction, the focus is often on operational efficiencies, production optimization, and new technology. However, many are surprised to learn about the significant savings opportunity available through the Research & Development (R&D) tax credit. The credit provides a dollar-for-dollar reduction of federal tax liability for qualifying activities. Unfortunately, many Massachusetts companies miss out on millions in savings due to the misconception the credit is only for large companies with formal R&D functions. This is not true, in fact, many businesses already qualify for the credit based on current business activities.
Boston R&D Credit Experience
Calvetti Ferguson provides R&D Consulting services to Massachusetts area companies in a variety of industries. Typically, we work with those that have recently modified, changed, improved, or updated a process, method, or key software application. This often includes agriculture, architecture, engineering, food and beverage, manufacturing, electrical contractors, oil and gas, software, and technology companies. Our years of experience allow us to quickly evaluate savings potential and implement a seamless R&D tax credit study.
Massachusetts Small Business Profile
Boston R&D Tax Credit Process
- Phase 1: Initial Consultation and Benefit Estimate – During this initial phase, our R&D tax credit experts educate the taxpayer on the R&D tax credit and evaluate the eligibility of the company’s operations. A large part of this initial consultation revolves around the Internal Revenue Code’s 4-part test requirements of the R&D credit, and whether the company’s activities successfully meet those requirements. Key aspects discussed include company operations (historical and present), company financials, employee roles and responsibilities, major projects, project documentation, and relevant contacts.
- Phase 2: Qualification and Quantification – Once an agreement is reached, the focus turns to an investigation of the facts identified in the first phase. This often includes project interviews, quantifying related wages and expenses, and determining eligibility for the credit. Through oral interviews and review of documentation, the credit is finalized, and the appropriate tax forms are completed and made available to the taxpayer’s tax preparer.
- Phase 3: Final Report – Following the completion of the final credit figure and applicable tax forms, we may have some follow-up questions and requests, however, the bulk of the lift is out of the taxpayer’s hands. During this final phase, we prepare a final report outlining the specifics of the study process, findings, applicable regulations, and relevant documentation, figures, and exhibits. While this report is not required in advance of claiming the credit, it is an important piece of documentation to support the credit claim and it will be the first line of defense if the IRS ever audits the claim.
Massachusetts – State R&D Tax Credit
The state of Massachusetts offers an R&D tax credit for eligible research activities. The details may vary from the federal R&D tax credit.
Map of Boston, MA
About Boston (MA)
Boston played a significant role in the American Revolution and is home to many historic landmarks and attractions, including the Freedom Trail, which takes visitors on a tour of important Revolutionary War sites throughout the city. Other popular attractions in Boston include the Museum of Fine Arts, Fenway Park (home of the Boston Red Sox), and the New England Aquarium. It is also home to several prestigious universities and colleges, including Harvard University, Massachusetts Institute of Technology (MIT), and Boston University. The city has a strong economy, with major industries including healthcare, education, and technology.
Contact Our Massachusetts R&D Tax Credit Consultants
Calvetti Ferguson works with companies, private equity firms, and high-net-worth individuals nationwide. Regardless of the complexity of your compliance, assurance, advisory, or accounting needs, our team is ready to help. Please complete the form below, and we will follow up with you shortly.