r&d tax credits

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The Nation’s Leader in Research and Development Tax Services

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If your company spends money on improving its product, developing new products or improving processes you could be missing out on hundreds of thousands of dollars.

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Page 1: R&D Tax Credits

The Nation’s Leader in Research and Development Tax Services

Page 2: R&D Tax Credits

AmCorp Management, Inc. has been highlighted by the following media outlets

Plus many more…

Page 3: R&D Tax Credits

AmCorp Management is the Nation’s

A C ’ R&D f l l f d l d t t R&D t dit

Leader in R&D Tax Credit Services

AmCorp’s R&D focuses solely on federal and state R&D tax credit programs. These corporate economic incentives are conservative, IRS approved and Government sponsored programs.

If your company has invested time, money and resources towards improving and/or advancing its products or processes you may qualifyfor Research and Development Tax Credits.

AmCorp has relationships with teams of senior-level specialists. These specialists include tax experts, attorneys, accountants, technical writers and software engineers. Each of these specialists are committed to providing you with the most effective and meticulous Feasibility Study and follow-upmeticulous Feasibility Study and follow-upResearch and Development Study available.

Page 4: R&D Tax Credits

The R&D Tax Credit Opportunity

The R&D Tax Credit was created by Congress in 1981 as an incentive to Increase private industry research investments. Recognizing that T h l i l i ti d i i th d ti it dTechnological innovation drives economic growth, productivity, and competitiveness, the purpose of the credit was to reverse a decline in non-governmental U.S. research and development efforts.

To qualify a company must produce a expansive Research and Development Report detailing every qualifying aspect .

When the IRS approves the R&D Report your credit is not a deduction butWhen the IRS approves the R&D Report your credit is not a deduction, but a dollar for dollar credit against taxes owed or taxes paid. The qualifying aspects are certain types of product development, expansion, yp p p pprocess improvement and engineering activities. It is for businesses of all sizes in a variety of commercial activities, including engineering, manufacturing processing food productionmanufacturing, processing, food production, development and other commercial endeavors.

Page 5: R&D Tax Credits

What The Experts Say

Reuters"The tax credit is a huge factor in fostering the technological advances that are the cornerstone of America's success “that are the cornerstone of America s success.

Government Relations Committee“Your company could be losing hundreds of thousands of dollars by not taking advantage of the R&D Tax Credit provisions.”

IPC Association“If your company invests in advancing your products or innovating yourIf your company invests in advancing your products or innovating your processes, your pursuit of the credit could yield significant current and future year tax savings.

W ll St t J lWall Street JournalIf your company has spent time and energy to improve your product and make it better, faster, and cheaper—then you have qualifying researchand cheaper then you have qualifying research under the Federal Research and ExperimentationTax Credit.

Page 6: R&D Tax Credits

The R&D Tax Credit Opportunity

The R&D Tax Credit Opportunity:

• Is a relatively unknown source of immediate cash for many companies.y y p

• Provides a reduction to current and future years for federal and state tax liabilities.

Opens the doors to tap into the 110 billion dollars of available federal• Opens the doors to tap into the 110 billion dollars of available federal Research and Development tax credits.

• Is available for the last 3 open tax years plus the current year.

• May open additional years if the tax payer isin a net operating loss or alternative minimum tax position.

FACT:

Over 90% of the businesses that qualify failto fully capture all their available tax creditsto fully capture all their available tax creditsthrough the R&D Tax Credit program.

Page 7: R&D Tax Credits

What Really Qualifies

We find that most of our clients fail to consider themselves qualified.They say we are “just doing our job” when it comes to making their Products faster more economical lighter stronger cheaper or evenProducts faster, more economical, lighter, stronger, cheaper or even improving the process in which its made. But the fact is these activities qualify for the R&D Tax credit. Here are some of the qualifying activities:

Manufactured products• Manufactured products• Development of new, improved or more reliable products/processes/techniques or formulas• Development of prototypes or models (including computer generated models)• Designing of tools, jigs, molds and dies• Development and application for patentsp pp p• Development of new technologies• Attempt of using new materials (failed or successful)• Integrate, design and modification of new equipment• Development of new production or manufacturing processes• Improving on new production and manufacturing processes• Improving on new production and manufacturing processes• Development of production control or management software• Improvement of manufacturing facilities or processes• Building of new manufacturing facilities or processes• Automation of or streamlining of internal processes• Expend resources on outside consultants or contractors

for doing any of the above stated activities

Page 8: R&D Tax Credits

Has Your Company Ever Done a

Most Companies Haven't

Research and Development Report?

Those who have fail to fully take advantage of every aspect available.

Our ApproachPhase one: Feasibility Study and AssessmentPhase one: Feasibility Study and AssessmentWe collect all the needed data and provide you with a no-cost, no-obligation Feasibility study to determine qualifying opportunities.

Phase Two: Devise and ImplementationWe devise a detailed work plan and execute it accordingly. We interview necessary employees, analyze contemporaneous documentation andfinancial information to finalize the quantitative aspects of the study.financial information to finalize the quantitative aspects of the study.

Phase Three: ReportingThis phase is where all the previous preparation and work comes together i lifi d R&D T C dit R t Thi l i l d th f ilit ti din a qualified R&D Tax Credit Report. This also includes the facilitation andPreparation of any required tax preparation.

Page 9: R&D Tax Credits

Examples

If a company has operational and procedures that qualify for R&D Tax C dit th i t i ld b b t ti lCredits their tax savings could be substantial.

The percentage of annual costs that qualify for the R&D Tax Credits could range from 5 to 20% of gross annual revenue, sometimes more.

Dollar Amount 1 yr Credit @ 5% 3 yr Credit @ 5%$1,000,000 $50,000 $150,000$5,000,000 $250,000 $750,000

Dollar Amount 1 yr Credit @ 20% 3 yr Credit @ 20%Dollar Amount 1 yr Credit @ 20% 3 yr Credit @ 20%$1,000,000 $200,000 $600,000$5,000,000 $1,000,000 $3,000,000

Our average client qualifies for over $350,000 in Tax Credit Refunds.

Page 10: R&D Tax Credits

Actual Clients

Medical Equipment ManufacturerRevenue $32,000,000 - Tax Credit Savings $560,000

Communications Equipment ManufacturerRevenue $8,000,000 - Tax Credit Savings $85,000

Chemical Coatings CompanyRevenue $85,000,000 - Tax Credit Savings $1,200,000

Enterprise Software SystemsEnterprise Software SystemsRevenue $42,000,000 - Tax Credit Savings $1,800,000

Chemical ProcessinggRevenue $550,000,000 - Tax Credit Savings $2,300,000

Compressor ManufacturingRevenue $15 000 000 Tax Credit Savings $140 000Revenue $15,000,000 - Tax Credit Savings $140,000

Page 11: R&D Tax Credits

Most Common Asked Questions

Shouldn’t I already be doing this?Not necessarily, experience shows that less than 10% of the y pcompanies that qualify actually take advantage of the R&D Tax Credit in any form. Most of those are public companies who can afford to access specialty tax services, plus the R&D Tax Credit Report is a very complex processcomplex process.

Will this cause an IRS audit?No, the IRS has defined the R&D Tax Credit procedures and when they are followed there are no problems. We have over 4300 problem free tax clients. Plus if there ever is an issue with our work we stand behind it 100% with no cost to the client.

How do I know if I qualify?By allowing AmCorp to do a no-obligation, no-cost Feasibility Study on your tax filings.

Page 12: R&D Tax Credits

Our Process

P id ith t bli ti f ibilit t dProvide you with a no-cost, no-obligation feasibility study

This will:

• Identify your available Tax Credit savings

• Outline the processOutline the process

• Outline our pre-determined flat based fee

• Highlight your responsibilities

• Detail the timeline of the process

Page 13: R&D Tax Credits

The Next Step

YOUSUBMIT A LETTER OF UNDERSTANDINGSUBMIT A LETTER OF UNDERSTANDINGPROVIDE COPIES OF THE FOLLOWING:

Required tax recordsContact Person

AmCorp ManagementANALYZE YOUR RECORDSPROVIDE A FEASIBILITY STUDY

Upon approval of the Feasibility Study, we will prepare a qualified R&D Tax Credit Studywill prepare a qualified R&D Tax Credit Studyas well as prepare all the necessary filingdocumentation required for your to receive your tax refunds and savings.