Archive for May 2, 2012
Maximizing Savings through Tax Credits
|Mike Snead from Romo Incentives Group, solution provider at the marcus evans Tax Officers Summit XIII 2012, on impacting an organization’s bottom line through tax credits.|
Interview with: Mike Snead, Director of Business Development, Romo Incentives Group
FOR IMMEDIATE RELEASE
“Many companies do not claim tax credits due to the significant time and paperwork involved in obtaining them,” says Mike Snead, Director of Business Development, Romo Incentives Group. Tax officers must focus on the savings they can achieve through incentives, he adds.
From a solution provider company at the marcus evans Tax Officers Summit XIII 2012, in Hollywood, Florida, May 17-19, Snead discusses staying up to date with regulation changes and the growth of the research and development (R&D) tax credit sector.
Why do some organizations not take advantage of tax credits?
Many companies do not claim tax credits due to the significant time and paperwork involved in obtaining them. Internal tax departments and certified public accountants (CPAs) are often burdened with the tax compliance of filing returns and conducting audits, so they do not have the capacity or expertise to identify all of the tax credits.
Tax credit eligibility and functionality can change dramatically through regulation changes, court cases, zone boundary changes and new laws. It is very difficult for tax officers and CPAs to stay current on how all of these changes affect their firms or clients.
Why are we seeing an increase in the amount of R&D tax credits being filed?
The R&D tax credit has changed and expanded dramatically over the last eight years, and yet the vast majority of tax officers and CPAs are unaware of how these changes can benefit their firm.
A key change to the R&D tax credit is that a firm no longer has to develop a new patent or product to receive it. Now, if the firm has improved its operations through new equipment, automation or processes, it can receive the credit. For example, if a large auto glass manufacturer has spent USD 100 million on updating its plant with new furnaces and equipment, the tax officer may have no idea that reconfiguring and updating the manufacturing plant could help the company generate tax credits. A company that produces nuts and bolts may not consider itself eligible for R&D tax credits since it has not produced a new product in 40 years, but it may receive R&D tax credits for simply improving its manufacturing process.
How can organizations maximize their tax savings?
Cost segregation reclassifies up to 60 per cent of the assets in a building from real property into personal property, which results in the acceleration of the depreciation of those assets into shorter schedules. This can save a company 10 to 20 per cent of the purchase or construction cost of a building.
Federal hiring credits, such as Empowerment Zones and Work Opportunity Tax Credit (WOTC), can save a firm USD 1,500 to 9,000 per qualified employee on its federal income tax. State hiring credits, such as Enterprise Zone Tax Credits, can result in a savings of USD 3,000 to 37,440 per qualified employee on its state income tax.
R&D tax credits offset both federal income tax and, in 38 states, state income tax. Companies can take advantage of these tax incentives by doing a feasibility study to see which tax credits apply to them.
Contact: Stacey Melvin, Journalist, marcus evans, Summits Division
Tel: + 357 22 849 400
About the Tax Officers Summit XIII 2012
This unique forum will take place at The Westin Diplomat Resort & Spa, Hollywood, Florida, May 17-19, 2012. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes presentations on confronting the endless challenge of how to cope with the evolving tax world, the pressure of staying up to date with pending legislation and best practices for running the tax function.
The Finance Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations.
Please note that the Summit is a closed business event and the number of participants strictly limited.
About Romo Incentives Group
Romo Incentives Group is a business tax consulting firm that focuses on obtaining significant savings for its clients in the form of tax credits and incentives. The firm’s services include hiring credits, energy incentives, R&D credits, Cost Segregation deductions, Sales & Use Tax recovery and other incentives.
About marcus evans Summits
marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-on-one business meetings. For more information, please visit www.marcusevans.com
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