Bedford Cost Segregation Launches Two New Services:
Research and Development Tax Credit Consulting and Bedford Energy Consulting
Bedford Cost Segregation is proud to announce the launch of their latest service divisions relating to Research and Development (R&D) Tax Credit and Energy Consulting.
The R&D Tax Credit, implemented in 1981, allows for a nonrefundable dollar-for-dollar reduction of tax liability for companies engaged in qualified research and development activities – i.e. those activities related to the creation of a new or improved product, process, or technology. The R&D tax credit provides immediate cash flow advantages that can assist in the funding of the company’s R&D initiatives. This credit has been made permanent as part of the Protecting Americans from Tax Hikes Act of 2015.
Currently the R&D tax credit is seen as one of the most beneficial tax credits offered; however, it is also one of the least utilized, with only approximately 8% or less of all potentially qualifying companies applying for it, largely due to the fact that many companies do not know that they are eligible. “There is a common misconception that these activities are limited to a company whose employees wear white lab coats, but the reality is that roughly 75% of all applicable companies currently applying for the credit are in the manufacturing industry, with the work being done by engineers and developers”, stated Greg Bryant, Managing Partner at Bedford. “This tax credit is beneficial to businesses across industries, and it is available in approximately 70% of states in the U.S. In order to receive the highest tax credit possible, companies need to assess their R&D initiatives and identify areas of opportunity.”
On the energy side, Internal Revenue Code Section 179D, enacted by Section 1331 of the Energy Policy Act of 2005 (EPAct 2005), provides tax deductions of up to $1.80 per square foot to taxpayers with qualified energy efficient commercial property placed in service after December 31, 2005 and before January 1, 2017.
“EPAct is often overlooked because it requires certification by a qualified individual. Our team approach is a valuable resource to the owner and his accounting team to assure compliance and maximum benefits,” stated Karen Koch, Managing Partner for Bedford Energy Consulting, located in Louisville, KY. “The deduction is taken in the first year of energy efficient equipment installation which normally would be depreciated over a 39-year recovery period. For government buildings, the primary designer can claim the deduction”.
Bedford is excited about these two new service offerings and is looking forward to working with all current and perspective clients to help them discover their full tax credit potential.