Strategic tax planning can optimize your cash flow
New food safety regulations and dietary guidelines; consumers with less money to spend; and global competition are among the challenges that the food and beverage industry has to face. It’s a tumultuous time, but innovative thinkers in areas ranging from finance and technology to regulatory, health, and development say the answers can be found in collaboration and science.
Our team that serves the food and beverage industry would agree. And they also have answers to the next question. With credit so tight, how does an organization finance science and innovation?
Strategic tax planning can optimize your cash flow and enable your company to invest in its future success. Our professionals can help you with tax credits and deductions like:
- State and local incentives
- Research & development
- Cost segregation
- Domestic Production Activities Deduction (DPAD or Section 199)
- Worker opportunity credits
- Interest-Charge Domestic International Sales Corp (IC-DISC)
Incentives can help make your projects happen
If you are planning an expansion, relocation, or merger/acquisition, our state and local tax specialists can help you determine which tax credits, exemptions, and abatements are available to help support your project. They also can help you tap into financing and infrastructure assistance services.
Accustomed to working with local assessors, they also can ensure that assets are properly assessed, reflecting today’s market.
Are you being rewarded for your R&D?
With the emphasis on food science as a solution to quality and safety, your work on additives, preservatives and flavor may qualify for R&D tax credits. Remember the alternative simplified credit recently increased from 12 to 14 percent and IRS regulations have broadened the definition of research and development, making it easier to qualify.
Besides identifying R&D tax credit opportunities and substantiating the claim, you can depend on our tax professional’s to help document your claim. You will especially appreciate their approach if the IRS asks you to show you engaged in “qualified” research activities.
Domestic and global considerations
Our tax experts can also help you pursue the Domestic Production Activities Deduction (DPAD or Section 199) which may offer companies with manufacturing, producing or growing activities based in the United State a chance for a 9 percent deduction on qualified income.
If you are interested in entering global markets, they can help you investigate setting up an Interest-Charge Domestic International Sales Corp. or IC-DISC. IC-DISC is a tax incentive designed to encourage companies to export. It is best suited to small and mid-sized companies with exports exceeding $1 million.
Cost segregation studies
The goal of our tax team is to help you leverage every opportunity to minimize your tax liability. For instance if you’ve purchased, constructed, or renovated a plant or warehouse in the last 20 years, a cost segregation study can identify personal property that can be depreciated over a shorter recovery period.
Our tax team is supported by a group of technical tax experts that constantly monitor trends, legislation, regulations, and precedent-setting decisions on federal, state, and international tax issues.
They would like to remind you that good tax planning is like money in the bank.