Manufacturers are currently leveraging powerful tax incentives to the tune of $6 billion a year, yet evidence shows they are still leaving money on the table.
The first step to leveraging these incentives is understanding the two different ways the tax code encourages research. Not only can taxpayers immediately deduct qualified research costs (instead of depreciating or capitalizing them over as many as 39 years), they can also receive a direct credit of up to 20% for increasing qualified research spending over a base period amount.
