Episode 293: How to Get a Check From the IRS (Tax Credits Your CPA Isn’t Telling You About)

Did you know your construction business could be entitled to a whopping six-figure check (or more) from the IRS?

For others, that may sound too good to be true, but yes, construction business owners can get significant cash incentives from the federal government.

Large companies routinely take advantage of these cash incentives, yet most small companies like yours don’t even know these benefits exist. Why is it so?

In today’s episode, we are joined by Justin Rupple of Business Group Resources, a business incentive recovery firm, to talk about tax credits your CPA may not be telling you about.

Today, Justin discusses the tax credits that are available for business owners like you, how much money most construction businesses are leaving on the table, and how you can qualify for these tax credits.

R&D Tax Credit and Its Misconceptions

When it comes to taxes, the word “credit” might not be the first thing that comes to mind. After all, we associate taxes with money getting out of our pockets rather than the other way around.

But what if I told you that there are hidden gems in the world of taxation that your CPA may not be telling you about?

Among the few ones that are on the top of the list are:

  • Employment reimbursement programs
  • Cost segregation studies
  • Energy efficient commercial buildings tax deduction
  • Federal empowerment zone hiring credits

However, there is ONE particular tax credit program that is most often overlooked by small businesses and routinely capitalized by large corporations – the research and development (R&D) tax credit.

So, what exactly is the R&D tax credit, and why should you care?

Well, the R&D tax credit program is designed to reward companies – big or small – that push the boundaries of innovation, providing a financial boost that can help fuel further growth within the organization and the industry as a whole.

Sadly, the Wall Street Journal estimates that only about 5% of eligible small businesses are actually taking advantage of the R&D tax credit.

Moreover, construction businesses with average revenue of around $8M a year potentially leave about $100K or more on the table. And that’s a lot of money!

You Don’t Need to Wear Lab Coats

Part of why construction companies don’t take advantage of the R&D tax credit is the thought that only those who wear lab coats and have scientist staff can avail.

Well, construction businesses DON’T necessarily need to do research and development to avail of one. Confusing? Okay, let’s dig deeper.

Lab coats, beakers, test tubes, and whatnot – forget all those (for now). Research and development is much broader than we typically think about, especially in the context of construction.

According to Justin Rupple of Business Group Resources, you’re NOT making a revolutionary product that could change the world, BUT you are developing systems, processes, and new designs.

The R&D tax credit is one of the oldest tax credits on the books. When this was first designed, this discovery rule only caters to research activities. But in 2003, the term “discovery” was eliminated.

Companies can now claim credit for research activities that are only new to the company itself and the clients they serve. And for construction businesses, some aspects are always new.

Want to know more about how you can qualify for this tax credit program and get a check from the IRS? Listen or watch the full episode HERE.

Additional Resources:

– Recover your tax overpayments HERE 

– Book a FREE call with our team HERE

– Sign up for our FREE training HERE

– Visit Construction Leading Edge for more HERE

Connect with Justin:

– Check Justin out on LinkedIn HERE

– Check Business Group Resources for more HERE

The Construction Leading Edge Podcast helps construction business owners maximize their revenue, eliminate chaos, systematize their work, and win back their time.

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