Chamber Members: Would you like to reduce or eliminate your tax liability?

What Are Business Development Tax Credits?

Business development tax credits are government-backed incentives that offset the costs of activities aimed at advancing technology, improving efficiency, or enhancing products and services. These credits can help cover expenses like wages, supplies, and contract research tied to your company's innovation or improvement efforts.

Why Should Every Industry Check Their Eligibility?

Here’s why companies from all sectors should explore these credits:

1. Wide Industry Applicability 

Many industries are eligible for business development tax credits, often without realizing it. Just a few examples include - Many more industries that qualify i.e. dermatology, energy-solar, fabrication, finance, food/beverage, HVAC, landscaping, pet, plumbing, printing, real estate, technology, wineries, breweries etc..: 

• Construction: Companies developing new building methods or using materials to meet safety or environmental standards.

• Logistics: Businesses improving route optimization or developing software to streamline operations.

• Architecture: Firms creating innovative designs or energy-efficient structures.

• Automotive: Manufacturers advancing vehicle technology or enhancing production efficiency.

• Banks: Institutions developing new financial software or cybersecurity systems.

• Dental: Practices adopting cutting-edge technologies or improving patient-care procedures.

• Manufacturing: Companies refining production processes, creating new machinery, or developing prototypes.

2. Significant Financial Benefits

Business development tax credits provide substantial financial rewards. Companies can:

• Amend returns for the past three years, potentially leading to refunds on previous tax liabilities.

• Carry forward unused credits for up to 20 years, allowing long-term tax savings.

• For startups, credits can offset up to $250,000 in payroll taxes, even if the business isn’t profitable yet.

3. Immediate Financial Impact

By amending past tax returns, businesses can see immediate financial benefits, such as refunds that boost cash flow. For instance, a logistics company that optimized delivery systems or a dental practice that implemented new patient-care technologies may be able to recover development costs from recent innovations.

Why It Matters

Business development tax credits not only reduce the financial burden of innovation but also encourage companies to continue investing in growth. Whether you're designing a new building, improving a manufacturing process, or developing new software, exploring these credits could lead to significant tax savings and greater financial flexibility.

Conclusion

From construction to banking, nearly every industry has the potential to qualify for business development tax credits. By checking your eligibility, your business can unlock hidden financial benefits, recover costs from past efforts, and fuel future growth. Don’t leave money on the table—explore your eligibility today and take advantage of these valuable credits.

To learn more about the available credits for your industry or check your eligibility, feel free to contact me directly at melissa.lang@nestworth.us or call 985.373.6708.