How the R&D credit applies to Port Charlotte businesses

The federal R&D tax credit rewards work that tries to improve a product or process through design and testing. In Port Charlotte that can be light manufacturing, marine work and building trades where a team develops a better way to make or build something.

The credit is claimed on the federal return, so Charlotte County companies follow the same rules as any other. Many are owner-run S corporations or LLCs, so the credit passes through to the owners and your CPA files it with the return.

Work we often see around Port Charlotte

• Manufacturers: light manufacturing and process improvements

• Construction and contractors: engineered building methods and custom systems

• Marine and boat building: marine design, repair methods and custom builds

• Engineering and architecture: custom designs and technical solutions

Work that often qualifies

• Developing a better method to make or assemble a product

• Designing a custom system to solve a building problem

• Testing a new material or coating for marine use

• Building a prototype and revising it after trials

• Creating a tool or fixture that speeds up production

Work that usually does not

• Routine construction, repairs and maintenance

• Production runs to an existing design

• Cosmetic changes and marketing work

Costs that count

Wages for the people doing the work, supplies used in testing and a share of outside contractor costs can count when they tie to a qualifying project. We match each cost to a project so your CPA has a file that holds up if the IRS asks.

What to bring to a screening

• A list of products, methods or custom jobs from recent years

• Who worked on them and about how much time they spent

• Photos, sketches, notes or test results

• Payroll and material totals for those projects

Based in Sarasota, we work with Port Charlotte and the rest of Charlotte County, and with businesses across Florida and the United States.