Date post: | 21-Mar-2017 |
Category: |
Business |
Upload: | rick-keeler |
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The Federal Researchand Development Tax Credit
Originally established in 1981
by the Economic Recovery
Tax Act (ERTA)
1981
Nearly $14B credits claimed
in 2015$14B
87% of credits claimed by
companies >$100M in
revenue
87%
60% ($6.8B) of credits
claimed by manufacturing
industry
60%
The Protecting Americans
from Tax Hikes (“PATH”) Act
was signed into law
December 18, 2015
Dec 18
Has been permanently
extended
R&D credit can offset
payroll tax
Final regulations issued in
early 2015 clarify the
definition of qualified
research for software
development activities
2015
2 Major Changes for Startups
05
The Impact
Companies with little or no revenue can now monetize
the credit if they are a ‘qualified small business’
Generally results in up to 10% of qualified
investment on new innovation, plus state incentives
Permanently enacted, with bi-partisan support
Start-ups, investors,
and funders have
access to a new
form of non-dilutive
capital that never
existed before
Can be claimed every year, for new, or improvements to
existing products/ or processes.
06
Qualified Small Business
<$5 million in revenue in the tax year in which it makes the payroll election; AND
$0 revenue in any tax year preceding the five-tax-year period that ends with the tax year of the election (e.g. For a 2016 payroll election, cannot have had any revenue prior to 1/1/12)
A Qualified Small Business:
Claim up to $250,000 R&D tax credit against their payroll taxes each year
Make a payroll offset election for each year they are a qualified small business
Qualified Businesses can:
…is a technology enabled tax service made specifically for
entrepreneurs.
We provide a seamless and efficient way for start-ups and early stage
companies to qualify for and claim the Federal R&D tax credit.
08
Our Story
Our mission: to help as many entrepreneurs as possible get this
money back into their business and enable innovation and growth.
Brent JohnsonPresident
Clarus Partners
Columbus based accounting firm
Jeff HaskettTechnology
Entrepreneur
Together providing a deep
expertise in tax, accounting,
start-ups, and technology
Began when Brent recognized a
huge opportunity with passing of
the PATH act
Qualification &
calculation reports are
generated and kept for
your records and
compliance
Documented &
Secure
Integration with payroll
providers for easy
filing of the offset –
Clarus takes care of
everything
End to End,
Turn-key Service
Contingent fee with no
cash up front, pay only
when benefit is
received
Cash Flow
Friendly Pricing
SaaS-based, ‘Turbo-
tax’ experience with
lots of help and no
extra work
Self guided but with
credible support from
tax professionals
Technology
Enabled
Built for Start-ups
010
Our Solution
Built for busy people…
Save/resume for when you have time
Real time credit calculation
Self guiding ‘wizard’ based interface with
lots of help and examples
Compliant report generation
Getting Started
Qualification and Preliminary
Credit Calculation
Using Clarus R&D internet based technology
Clarus R&D Tax Analyst review
Qualification Report & Draft Calculation of your credit
21
Kickoff Qualification Calculation Strategy Filing
Getting Started
Final Credit Calculation
After year-end financial close
21 3
Kickoff Qualification Calculation Strategy Filing
Getting Started
Monetization Strategy
(payroll deduction or income tax credit)
21 3 4
Kickoff Qualification Calculation Strategy Filing
Getting Started
Payroll Filing with
Quarterly Tax Filing
With payroll processor, handled by Clarus R&D
21 3 4 5
Kickoff Qualification Calculation Strategy Filing
016
Our Pricing
There is never an upfront fee.
Our fee is a percentage of the credit you realize, and only after you start to receive it.
With three year agreement, and partner discounts, most customers pay only 10%.
With ACH agreement there is is never an invoice.
Cash Flow Friendly for Start-ups: