FOCUSED ON TAX SAVINGS Whitlock, Selim & Keehn, LLP is helping manufacturers take advantage of the Research & Experimentation (R&E) Tax Credit regulations issued by the U.S. Treasury Department. More businesses are eligible for the Credit since 2003 and the number of activities eligible for the Credit for those companies already taking it have also been expanded. In addition, the Tax Relief and Health Care Act of 2006 extended the research tax credit to amounts paid or incurred in 2006 and 2007. For 2007, the new law also makes two enhancements that could make the credit more valuable for many businesses.  Most Manufacturers Eligible for Sizeable Refunds If your manufacturing company hasn't completed an R&E Tax Credit study and amended its returns in the last few years, it is probably missing the opportunity for a sizeable federal tax refund, which is also tax-free. The regulations changed in 2003 by removing two major obstacles to qualifying for the Credit. First, the discovery test was eliminated. This means a manufacturer no longer has to be discovering something new to the industry-just something new to the company. Under the new regulations, the company may qualify for the Credit if it is spending time and money to make its processes more efficient, whether that involves making a production line faster, reducing scrap, reducing set up time, etc. The company may also receive the Credit for improving its product (i.e., making it more durable, reliable, higher quality, have a longer shelf life, and more). The second obstacle removed by the U.S. Treasury Department was to do away with the contemporaneous record keeping requirement. Now, making a reasonable allocation of the time spent on qualifying research activities replaces the time sheets that used to be required. The new regulations were also made to be retroactive, so the qualifying research & experimentation expenses can be documented for all open tax years. Does your company: Manufacture products? Develop new, improved, or more reliable products/processes/formulas? Develop prototypes or models (including computer generated models)? Design tools, jigs, molds or dies? Develop or apply for patents? Perform certification testing? Conduct testing of new concepts and technology? Develop new technology? Attempt to use new materials? Add new equipment? Perform environmental testing? Develop or improve production/manufacturing processes? Develop, implement, or upgrade systems and/or software? Develop production control software? Improve or build new manufacturing facilities? Automate/streamline internal processes? Expend resources on outside consultants/contractors to do any of the above stated activities? If you answered "yes" to any of these questions, you may qualify for the Research & Experimentation Tax Credit. WSK professionals will help you navigate the regulations and earn the refund you deserve. The firm has specialists devoted to the Research & Experimentation Tax Credit process. Contact David Myers or Mike Carroll at (417) 881-0145 or David today for more information.