Maximize Profitability – Tax Credits & Rebates
This post concludes a series of eight successful strategies companies should utilize to drive sustainable growth and profitability. These strategies provide a road map for the strategic leaders to develop a highly differentiated competitive advantage that accelerates value creation and builds brand loyalty. Key elements of the road map are:
- Growth through Innovation – Beyond just a “me too” solutions provider
- What is Innovation – Importance of innovation to have “differentiation”
- Types of Innovation – Comprehensive view on innovation
- Technology Roadmaps – VOC focused investments with highest ROI
- Operational Excellence – Comprehensive view, applies to all business processes
- Rapid growth (Organic) – How to get rapid growth by utilizing various levers
- Business Development – Build long term partnerships with customer vs make a sale
Utilize tax credits and rebates to maximize profitability:
Business leaders can significantly improve the ROI on the R&D, and Operations capital by strategically approaching all available federal & state tax credits and rebate program.
Research & Development Tax Credits and Commercial & Industrial Energy Conservation Rebates are two such examples. Read on to gain insights into profitability improvement opportunities these credits & rebates offer.
Research & Development Tax Credits:
Research & Development Tax credits are federal and state programs that save U.S. companies over $7 billion every year. R&D tax credit programs are available to U.S. based companies performing R&D in the U.S. These incentives were implemented to stimulate R&D in industries of all types and sizes.
Any company that designs, develops, or improves products, processes, techniques, formulas, inventions, or software may be eligible. In fact, if a company has simply invested time, money, and resources toward the advancement and improvement of its products and processes, it may qualify.
Further more, the R&D Tax Credit regulations allow eligible taxpayers to “look back” to all open tax years (typically three years plus the current year) for potential research credits that were never claimed. These credits are not a deduction; it is an actual dollar-for-dollar credit against taxes owed or taxes paid.
Companies can cover a wide variety of Qualified Costs/Expenses through appropriate identification of projects, estimation of costs and by collaborating with service providers and tax consultants.
Commercial & Industrial Energy Conservation Rebates:
C&I Rebates are state programs that can off-set companies investment in high energy efficiency equipment. These rebates are the most miss-understood and under utilized especially by companies in the manufacturing domain.
C&I rebates are much more than the typical energy rebate that is hawked by “Energy Management Consultants”. These are “Custom” rebates that are covered in the incentives for equipment, tools or systems. They have the potential to off-set up to 50% of the capital investment made by a company.
Achieving energy efficiency through increased productivity or elimination of subsequent process steps are some examples of how these incentives can be leveraged. Many states allow eligible companies to “look back” for potential rebates, examples are OH, MA, PA, etc..
Here is a example of how C&I Rebates can help companies maximize their profitability:
The author, KetanDeshpande, lives in Minnesota and writes about a variety of topics in his blog such as global economy, market and industry trends, successful strategies for businesses, and others. Leveraging his global strategic leadership experience from the manufacturing industry to offer insights in to how businesses can meet the sustainable growth and profitability goals.
Ketan Deshpande is also passionate about sustainability and renewable energy; he curates and shares latest updates in his blog posts. Recently the Southern Minnesota Municipal Power Agency(SMMPA) of Litchfield, Minnesota, endorsed Ketan Deshpande for an energy conservation project.
This blog also features memorable events, travel experiences and his favorite places to visit in the great state of Minnesota.