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R&D Tax Credits The Manufacturing Incentives benefit is a Federal program designed for companies that perform manufacturing in the U.S. This program is listed under Section 41 of the IRC (Internal Revenue Code) and continues to be amended on an annual basis as the U.S. manufacturing landscape continues to evolve. This is an engineered based program that focuses on a company’s operations and processes in order to determine their qualification for incentives. The Manufacturing Incentives benefit provides an avenue to receive ‘tax money’ back from prior years while also reducing current taxable income on a dollar-for-dollar basis. The R&D Tax Credit is a general business tax credit and allows companies to apply the benefit against federal taxes. This tax credit is not a deduction but a dollar-for-dollar offset of tax liability. If the client does not tax liability in a year the credit is generated, the federal credit may be carried back 3 years and forward 20 years. In the instance of back studies clients may receive an actual check back from the IRS. A client can do an R&D Tax Credit study for the current tax year, they can go back 3 years and most often become a residual year over year client. The client is normally charged and pays in two separate invoices. After the client is engaged, and a benefit has been verified our staff begins performing the QRE. During this time technical interviews take place along with additional engineering review of documentation and payroll allocation. The QRE forms and schedules are delivered to the client and the invoice for payment 1 follows shortly thereafter. This is the moment when the client realizes their benefit. During this time the Audit Defense report compilation has started. Upon completion of the Audit Defense Report, it is sent to the client and invoice for payment 2 follows within a few days. During the report compilation process the client has already begun to submit to the IRS to claim their benefit. Many times the client has already received their physical check from the IRS before having to pay for invoice Targeted Industries Manufacturing, Engineering, Software, Chemical & Pharmaceutical companies Minimum Requirements Has $1.5M in annual payroll, has filed taxes in the past 3 years and is a Manufacturing, Engineering, Software, Chemical or Pharmaceutical company Client Fee 35% of benefit DW Compensation 10.5% of fee Agent Payout (Example On $250,000 Client Benefit) 35% Client Fee = $87,500 10.5% Digital World Comp = $9187.50 40% Personal Level Payout = $3675