Dean Zerbe has been described as a tax code savant. He was in Little Rock on Monday to introduce former U.S. Sen. Blanche Lincoln as the newest member of the alliantgroup’s strategic advisory board.
Zerbe — a contributor to publications such as Forbes, Entrepreneur and Bloomberg — serves as the group’s national managing director. He and his firm were in town, essentially, to drum up business in Arkansas through its new association with Lincoln, and believe it or not, that has a lot to do with innovation and Arkansas startups.
Many U.S. small businesses and startups don’t realize they qualify for R&D and other tax credits, and that’s why alliantgroup is in business.
The R&D credit, for example, applies to any business that has made a change to improve its process or product. No lab coats required.
Here’s an excerpt:
While the big companies are cutting their taxes by using the R&D tax credit, too many small and medium businesses are just sitting and watching the parade go by. The No. 1 reason that these business owners don’t take advantage of the R&D tax credit is self-censorship. These business owners subscribe to an incorrect and outdated view of what activities are eligible for the credit.
The R&D tax credit is not just for putting a man on the moon and curing cancer; it’s for making improved office equipment (Xerox: $19 million in savings), software (Google: over $300 million in savings) and radios (Raytheon: $31 million in savings). And yes, with Mattel and its $4 million in savings, toys as well. Other businesses that are good possibilities for the R&D tax credit are not only manufacturing and software, but also architecture, engineering and some construction.
If you were surprised to learn that Barbie could get the R&D tax credit, then maybe it’s time to rethink whether your company could be eligible as well for the biggest tax credit for business — approximately $10 billion dollars a year.
For startups, it’s definitely worth a look.