1st Tax Incentives Such as Equipment Purchase Deduction (Section 179)

This tax incentives provision allows businesses to deduct the full purchase price of qualifying equipment and software the tax year of installation. For 2025, the maximum deduction is $1.25 million, with a phase-out threshold of $3.13 million. This means businesses can deduct up to $1.25 million of the cost of qualifying equipment. Additionally, the deduction begins to phase out dollar-for-dollar after $3.13 million in purchases. ​

2- Bonus Depreciation

In 2025, businesses can deduct 40% of the cost of qualified property when the property is placed in service. This incentive applies to new and used property with a recovery period of 20 years or less. It includes machinery, equipment, and certain improvements. Currently, bonus depreciation is scheduled to decrease by 20% each year. Of course the property in question must be used in your business for taxable income producing activities.

3- Research and Development (R&D) Tax Credit

Businesses investing in R&D can benefit from this credit, which encourages innovation by offsetting a portion of research expenses. The credit amount varies based on qualified research expenditures. It can significantly reduce tax liability for companies developing new or improved products, processes, or technologies. Often the application process is where businesses lose out on this credit. That is why we began helping clients navigate the required paperwork. Our current congress hopes to restore full R&D expensing along with 100 percent bonus depreciation and an easier formula for net interest expensing.

4 – Work Opportunity Tax Credit (WOTC)

The WOTC provides tax incentives for businesses to hire individuals from certain target groups that face significant barriers to employment. Groups such as veterans, ex-felons, and long-term unemployed individuals are included. The credit amount varies depending on the employee’s target group, wages paid, and hours worked. In a nutshell, potential credits range from $1,200 to $9,600 per qualified employee. ​

5 – Energy Efficient Commercial Buildings Deduction (Section 179D)

This deduction encourages businesses to invest in energy-efficient improvements to commercial buildings. Eligible improvements include energy-efficient lighting, HVAC systems, and building envelopes. When the improvements achieve a 50% reduction in energy and power costs comparatively. The deduction can be up to $1.80 per square foot of the building. ​

6 – Qualified Business Income (QBI) Tax Incentives

This deduction allows owners of pass-through entities (sole proprietorships, partnerships, S corporations) to deduct up to 20% of their qualified business income. For 2025, the phase-out thresholds for the deduction begin at $394,600 for married filing jointly. For other filers the deduction threshold begins at $197,300, adjusted for inflation. ​

7 – Removal of SALT Deduction Cap:

The State and Local Tax (SALT) deduction cap, previously limited to $10,000, is set to expire December 31, 2025. This change benefits businesses operating in high-tax states by allowing a full deduction of state and local taxes paid. Potentially significant tax savings can result. ​

As business owners, you can benefit by staying informed about these incentives. Take a moment to consult with your with tax professional to effectively incorporate these into your tax planning strategies. Tax laws are subject to change, and professional guidance ensures compliance and optimization of available benefits.

Identifying The Right R&D Program

The first step towards accessing an R&D program is to identify and understand the programs that align with your creative and innovative endeavors. We can help explain applicable government initiatives and grants specifically designed to support R&D projects. Over years of research, we have discovered several Blue Apple (rare) programs with a track record of rewarding creativity and innovation, as well as those that fund projects in your specific field.

Understanding Eligibility Criteria

Each R&D program will have its own set of eligibility criteria. We are proficient at determining if your work aligns with the program’s objectives. Common eligibility factors include but aren’t limited to the project’s purpose, applicant qualifications, and the potential impact of your innovation. As important as those factors are, how your project is communicated in the application process is often the determining factor.  We can help you carefully review and meet all the criteria to increase your chances of accessing the program. We’ll apply our experience as we guide you and your team through the entire application process.

The Impact of a Strong Proposal

Crafting a compelling proposal is essential to showcase the creativity and potential of your project. We will start by clearly defining how your research will try to solve a problem or process. Since the proposal needs to highlight the unique aspects of your approach, we’ll guide you on how to show those facets of your plan. Make a detailed plan of the steps that will bring your project to fruition. Include a timeline, budget, and expected outcomes. Use language that resonates with the program’s goals and clearly communicate the potential impact of your innovation.

Seek Experience You can Trust

Advice from experienced Financial Service providers with a successful program referral record can greatly enhance your chances of accessing R&D funding. Americore financial program guru Dennis Bays knows financial programs inside and out and can provide valuable insights and guidance throughout the application process. Forming strategic partnerships with research institutions can bolster the credibility of your proposal with private investors. Alternatively, at no cost up front, Americore can guide you to funding success from government programs designed with you in mind.

Submit a Comprehensive Application

Once you have developed a strong proposal, carefully review the application requirements. It is essential that all necessary documents are complete, correct and are included in the initial submission. Program requirements differ, but most will need a detailed project description, budget, team qualifications, and any supporting materials requested. Formatting, grammar, and spelling review will help you present a professional and polished application.

Follow Up and Remain Persistent

After submitting your application, follow up with the program administrators to confirm receipt and inquire about the selection timeline. Not only does this reflect your interest, but it ensures your application doesn’t get lost before it is in process.  In fact, it is important to remain persistent and proactive throughout the evaluation process. Be prepared for potential feedback or requests for additional information and respond promptly. If you are issued an application number, or notice one on requests for information, be sure to include it on all future submissions.  Make it as easy as possible for the program administrators to say yes to your request.

Accessing an R&D program can provide significant support and recognition for your company or project. The right financial advisor can help you understand suitable programs, understanding eligibility criteria, developing a strong proposal, seeking professional advice, and submitting a comprehensive application, you can increase your chances of accessing these valuable opportunities. Remember, the journey may be challenging, but the rewards for unleashing your creativity and innovation can be truly transformative. So, dare to dream big, and let your ideas change the world!  Then call our office at 747-224-8110 or contact us here. Tell your Americore representative what you’re looking for, and we’ll tell you how we think we can help you make that happen.