Uber’s self-driving cars are heading to Arizona

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Only one week after launching its self-driving pilot program in San Francisco, the birth place of Uber, the trial is moving to Phoenix, Arizona.

“Our cars departed for Arizona this morning by truck,” an Uber spokesperson said in a statement of the fleet of modified Volvo XC90 cars. “We’ll be expanding our self-driving pilot there in the next few weeks, and we’re excited to have the support of Governor Ducey.”

In 2015, Uber announced a partnership with the University of Arizona’s College of Optical science. The project focuses on research and development in the optics space for mapping and safety. Gov. Doug Ducey signed an executive order at the time, allowing the testing of the self-driving cars in the state.

The vehicles began testing in San Francisco, however after one week they were faced with backlash. The California Department of Motor Vehicles in partnership with the attorney general said the program has failed to obtain a permit to test self-driving cars. Uber in rebuttal, argued that the cars were exempt from a permit due to the presence of safety drivers in the car at all times. The presence of the driver meant the vehicles did not match the state’s description of an ‘autonomous vehicle’.

Given Uber’s existing relationship with Arizona, the cars will move testing to the state.

Massachusetts Scores Most Innovative U.S. State for the Second Year in a Row

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Massachusetts Ranks #1 in Bloomberg List of Most Innovative States

Massachusetts took the top spot once again in Bloomberg’s ranking of the most innovative U.S. state with California in a close second.

Although Massachusetts had less technology company density than in 2015, the state secured the number one spot by having more engineering and science graduates and jobs in those industries, according to Bloomberg data.

Each state was measured on a 0-100 scale across six pillars:

  • R&D intensity;
  • Productivity;
  • High-tech density;
  • Concentration of science, technology, engineering and mathematics employment;
  • Science and engineering degree holders; and
  • Patent activity.

Massachusetts recovered quickly from the last recession and has a 2.9 percent unemployment rate compared with a 4.6 percent national average.

What’s Massachusetts trick, you ask? Tax credits — especially those that promote research partnerships between companies and universities, like the R&D tax credit.

“Massachusetts got on a very early to the idea of trying to promote itself as an R&D center,” said Greg Sullivan, research director at Boston-based Pioneer Institute, a public policy research shop.

“Just shows the importance of the university cluster in Massachusetts, especially Harvard and MIT,” he continued.

Utah also deserves a shout-out for jumping six spots to number 14 from last year’s report. Bloomberg says this leap is due to an increase in R&D spending. Utah has followed in Massachusetts’ footsteps and focused on connecting education, government and local businesses.

California was followed by Washington, New Jersey and Maryland who took home spots 3, 4 and 5, respectively. If you jump to the bottom of the list, you will find Arkansas, West Virginia and Mississippi closing out the 2016 list.

If you are a business conducting R&D or any type of innovative work within the states, and are interested in learning more about the tax incentives available to you, please click here.

To speak with a Swanson Reed specialist, click here now.

Colorado Network Promotes Innovation

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“Colorado is the epicenter of today’s innovation conversation”

With a large R&D community and a progressive business environment, Colorado is well aware of the importance of experimentation and innovation in today’s culture. So much so they have created a network of more than 2000 global leaders dedicated to the concept.

As stated on its website, “the Colorado Innovation Network (COIN) is a catalyst for innovation with the mission of advancing connections in the global innovation ecosystem whereby Colorado is recognized as the most innovative state in the nation.”

Those a part of the physical and virtual network are devoted to the innovation ecosystem, growing companies and creating jobs in the public sector. They are working continuously to keep the conversation of innovation open and accelerating it.

The Colorado Innovation Network conducts an annual report on the state of innovation in Colorado over the past four years. The reports are founded on the pillars of talent, entrepreneurship, ideas and capital and evaluate data, statistics and qualitative insights across these four ideals.

If you would like to view the innovation reports from 2012-2015.

The network seems to be doing a great job with promoting statewide innovation and growth. According to coloradoinnovationnetwork.com, Colorado holds the following titles:

  • 1st in the nation for arts participation (2015)
  • 5th in the nation for startup  activity (2016)
  • home to the first startup weekend and the largest startup weekend in the world
  • the fastest growing economy in the United States (2014)
  • 2nd most highly educated state

Colorado offers a tax incentive to businesses conducting R&D and any innovative work within the state. Our specialists at Swanson Reed are always available to discuss your benefits on both a federal and state level.

To find out more about the Colorado R&D tax credit, click here.

To speak with a Swanson Reed representative, click here.

A Tax Credit to Benefit the Wine Industry

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The age old question: to wine or not to wine?

While the answer is always “yes” to wine, the Research and Development (R&D) tax credit should be giving winemakers (and wine drinkers) even more reason to celebrate.

The R&D tax credit could be making Northern California Wineries hundreds of thousands of dollars in tax credits each year, many winemakers are failing to even realize its existence. Those that are aware of the credit are unsure of its meaning and eligibility requirements.

Any company within in any industry is eligible for the credit if they substantiate their activities and satisfy the 4-part test.

With our video database, it is easy to understand the credit. The specialists at Swanson Reed have also put together case studies outlining real business situations and explaining how and why these businesses qualify for the credit.

If you’re a winemaker then the manufacturing and food beverage case studies should be of great help.

Want to find out if you are eligible for the tax credit? Click here

Are you a start-up business that is conducting in R&D, but just hasn’t made a profit yet? No problem, click here.

Our specialists at Swanson Reed are always on hand to discuss the best options for you and your business. Contact us now to learn more about the tax credit and your opportunities.

California Companies Lead Nation in R&D Spending and Performance

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According to a new report from the National Center for Science and Engineering Statistics, California spent $77 billion on self-funded business research and development (R&D), accounting for 30% of the total  $255 billion of R&D companies conducted and paid for in the United States in 2013.

California is up 5% on R&D spending from the last study performed five years ago. In fact, from 2008 to 2013, California’s R&D performance was growing at a quicker rate than its economy as a whole. This resulted in its ratio of business R&D to GDP to escalate from 2.8% to 3.5%.

Within California, the top two areas of self-funded business R&D performance include the San Jose-San Francisco-Oakland area and the Los Angeles-Long Beach area. No single industry dominated in the Los Angeles-Long Beach area, but to no-one’s surprise, computer and electronics manufacturing reigned king in the San Jose-San Francisco- Oakland area.

California isn’t the only state paying big bucks when it comes to research and development. Interestingly enough, only five states make up over half of the total $255 billion spend. The other four include Massachusetts, Michigan, Texas and Washington.

The top ten business R&D performance states are:

  1. California – $77 billion
  2. Massachusetts – $14 billion
  3. Michigan – $14 billion
  4. Washington – $14 billion
  5. Texas – $13 billion
  6. Illinois- $12 billion
  7. New Jersey – $12 billion
  8. Pennsylvania – $10 billion
  9. New York – $9 billion
  10. Minnesota – $6 billion

If you’re a business that pays for and performs R&D in your state, contact us to find out what type of benefits you could receive in the form of tax credits. Click here to learn if your state offers an R&D tax credit on the state level.

Alabama Succeeds in 2015 as a Top State for Investment

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In 2015, many companies found prominent investment opportunities in Sweet Home Alabama.

According to a recent report from Ernst & Young, Alabama ranked 5th among states for mobile capital investment with a total contribution of $5.3 billion. This precise type of investment refers to expenditures of funds for projects such as office buildings, factories, call centers, and distribution centers, often geographically distant from a company’s headquarters. Alabama is ranked 4th when this figure is calculated as a percentage of state GDP. This is a remarkable ascent as the 2015 investment figure is double the state’s corresponding averages for the 2010 to 2014 period.

Specifically, a large portion of Alabama’s investment comes from a few concentrated and well-funded fields, including automotive manufacturing and aerospace. The state’s Department of Commerce has expressed a strong interest in continuing to focus on these high-profile sectors to increase the number of “knowledge-based jobs in fields such as research and development (R&D) and engineering.” In this same vein, Google announced intentions to construct a $600 million data center in Jackson County.

Another significant apportionment of funds comes from international sources in the form of foreign direct investment (FDI). Almost half of capital investment in 2015 originated in 18 countries, including Germany, Canada, South Korea, France, and Japan. Germany led this prestigious pack of FDI nations, with growth primarily driven by Mercedes’ $1.3 billion expansion in Tuscaloosa, located in western Alabama.

Alabama’s impressive performance in the national and global economic spheres is similar to that of many other southern states. Texas and Louisiana were the top two states in Ernst & Young’s mobile capital investment ranking. Because southern states offer competitive operating costs and concrete logistical infrastructure, they draw many foreign companies looking to expand into North America. Other appealing elements include ascending workforce development levels and the presence of state and local tax incentives. Because of these factors, states like Alabama often serve as preeminent indicators and can forecast upcoming trends in the global marketplace.

The overall takeaway from the investment advantage Alabama holds, according to a principal at Ernst & Young, is that “states should continue to find their competitive edge to attract a wide variety of investment types and maintain a healthy economy.”

Companies like Google and Mercedes are expanding and innovating through investment in new, driven ideas. They are taking advantage of the opportunities Alabama provides, including various tax credits for R&D. These credits offer advantages to forward- thinking companies in the form of cash-saving benefits.

If you would like to know more about how R&D tax credits function and how they can profit your firm in particular, Swanson Reed’s professionals are available for constructive discussions. Contact us today if you would like to know if your company qualifies.

Astronomers say Arizona becoming hub for asteroid exploration

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Arizona State University’s (ASU) School of Earth and Space Exploration put in a bid for the school to lead a NASA mission.

NASA chose ASU to lead the $450-million Discovery mission to the metallic asteroid Psyche. ASU will also build a critical instrument for the robotic spacecraft and has a role in a second NASA mission announced last week.

The achievement of landing a NASA mission on ASU’s first application is extremely rare.“It’s kind of outrageous,” said Lindy Elkins-Tanton, Director of the School of Earth and Space Exploration. She noted she has been personally working on the science behind the mission for more than five years. Elkins-Tanton has previously been working as Director of a school that serves as mission control for two NASA space-based instruments.

On the day of the announcement, Elkins-Tanton wrote “We worked a paltry five and a half years. Other teams have gone through this process twice, three times.” Arizona will become a hub for space and asteroid exploration with the Psyche mission.

The Discovery program is a competition for “small” missions, capped at $450 million. Finalists for the current round of awards included two missions to Venus. A bid to launch an infrared space telescope to look for near-Earth objects was also a finalist. Although not selected, NASA continued funding for further development of the telescope. A NASA official congratulated the group of asteroid and comet researchers from across the country.

Additional NASA projects working in collaboration

In addition to Psyche, NASA selected the Lucy mission. Lucy provides the first close look at six “Trojan” asteroids. These asteroids are caught in Jupiter’s orbit, leading or following the giant planet in its orbit around the sun.

Jim Green, director of NASA’s Planetary Science Division, said NASA has not shifted its emphasis in its competed programs from planets to asteroids and comets. Green said the growth of small-bodies research is part of an evolution in thinking. Research into solar system formation began in Northern Arizona in the 1960s. Arizona began the research into how small bodies created our solar system, Green said.

The Psyche mission, scheduled to launch in 2023 will reach its target by 2030. Psyche, about 130 miles in diameter, resides in the main asteroid belt. The asteroid is about three times Earth’s distance from the sun.

The Psyche spacecraft will orbit its target for a year, using an array of instruments, including a multi-spectral imager being built by an ASU team, to determine the composition of Psyche, believed to be the iron-nickel core of a once-forming planet.

If  you would like to discuss the R&D Tax Incentive further, please do not hesitate to contact one of Swanson Reed’s offices today.

Alabama academic researchers powering new discoveries

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Groundbreaking research from universities across the state of Alabama are bringing new developments to industry, health care and community life. Projects which have been nationally recognized have received millions of dollars in funding support to continue their work in the state.

Examples of research work include:

Studies of carbon fiber reinforced polymer composites by an engineering professors at the University of South Alabama, to be used in the construction of new airplanes. This work has been funded by institutions including NASA, the National Science Foundation and the Department of Energy. Collaborative work has also been undertaken with global leaders in the aerospace industry, including companies such as Airbus. Partnering with Airbus allows for renewed research vision and efforts towards further innovative research in composite materials.

Airbus also has worked with USA and Auburn University by donating large airplane components for students and faculty to use in their studies. The partnership is helping to create aviation leaders of the future, the company says.

At the other end of the state, at the University of Alabama in Huntsville, a new $2 million wind tunnel system is capable of supersonic flow research with air speeds of up to 2,000 mph.

The facility puts UAH in an elite group of institutions nationwide with such research prowess. Test applications include supersonic engine intakes, scramjets and hybrid space vehicles and components.

The wind tunnel has also provided valuable experience for students.

An estimated $2.4 billion in federal research and development funds are spent each year in Alabama. It ranks 11th among the 50 states, according to a report from the nonprofit think tank RAND Corp.

Other research projects from Alabama’s universities include:

  • Auburn university – assistant professor in the Department of Chemistry and Biochemistry has received a five-year, $703,000 CAREER Award. Received from the National Science Foundation to study the problem of coastal red tides.
  • Stephen Secor, a professor of biological sciences at the University of Alabama, is exploring the ability of snakes to grow and restructure particular organs. His that work could affect future treatments for diabetes and other diseases in humans.
  • The University of Alabama at Birmingham and Hudson Alpha Institute for Biotechnology are partners in a project training postdoctoral fellows in genomic medicine.

When claiming the R&D credit, the rates used to calculate the credit hinge on whether or not the taxpayer worked through a university. Other factors include how many years the credit is being claimed:

  • Less than 3 years of QRE and did NOT work through a university = 2.5%
  • Less than 3 years of QRE and did work through a university = 3.125%
  • 3 years of QRE and did NOT work through a university = 5%
  • 3 years of QRE and did work through a university = 6.25%

Contact Swanson Reed today to find out more about the credit and if you qualify.

Colorado Emerging as Top Leader in Renewable Energy

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Since the early 2000’s, when technological advancements allowed wind to be used as a viable source of energy, the United States has emerged as one of the leading nations in renewable energy research and job creation. According to the American Wind Energy Association, 769,000 renewable energy jobs have been created in the United States, designating 88,000 jobs in the renewable wind sector alone. In an effort to remain competitive among other renewable sources of energy and fossil fuels, significant investments in wind energy are now being made all across the United States. So who is leading the charge in wind research and development? The answer may come as a surprise to some – it’s Colorado.

But Colorado’s emergence as a leader in renewable wind energy really shouldn’t come as a surprise. Since passing the nation’s first voter-led Renewable Energy Standard in 2004 – requiring electrical utilities to obtain a percentage of it’s power from renewable sources – Colorado’s investments in wind, solar and other renewable energy’s have ignited several projects all across the state. Now looking to grow it’s already diverse renewable energy portfolio, Colorado aims to tackle the wind energy’s most pressing technological challenges associated with cost and manufacturing while simultaneously creating an abundance of jobs. Until now, Colorado’s presence as an emerging leader has gone largely unnoticed. However with its latest $1.6 million investment in the National Wind Technology Center, Colorado has now solidified it’s presence on the wind industry map and has distinguished itself as a top leader.

The total $1.6 million investment coming from the state of Colorado in partnership with the National Renewable Energy Laboratory, a member of the Institute for Advanced Composites Manufacturing Innovation, will be used to shape the future of composite manufacturing. Perhaps you recall the announcement of the creation of the IACMI, a partnership consisting of 122 corporations, nonprofits, universities, and the Department of Energy, in an effort from the Obama Administration to bridge the gap between industrial and advanced research institutions. The objective is to create cutting edge manufacturing technologies of advanced polymer composites.

In this joint effort to further advance the wind renewable energy sector, the $1.6 million investment will go towards “Structural upgrades, like insulation and exhaust vents, along with manufacturing improvements including the installation of a gantry crane to move and support large objects,” according to project engineers. The investment was also made in an effort to turn the National Wind Technology Center into an innovation catalyst center while attracting the state’s top renewable energy innovators and leaders to simultaneously support the work force.

The project also calls for the completion of a Wind Blade Component Manufacturing Facility, which will serve as an R&D site for the renewable energy industry. The specific R&D projects are likely to include automated production and 3D printing to produce a more durable, inexpensive wind blade.

For a more in-depth look at how Federal R&D Tax Credits have helped to spur developments in Colorado, we at Swanson Reed encourage you to speak with our highly specialized team consisting of Certified Public Accountants, Engineers or PhD qualified chemists, who manage all facets of the R&D tax credit claim process.

For an unbiased guide to everything you need to know to get started with Solar: The National Council for Solar Growth

Are you and your business eligible for an R&D Credit? Find out here.

Bioscience Industry in Alabama nurtures opportunity

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Bioscience companies have found success and a home in the state of Alabama. The biotech industry is making an impact immediately within the state’s borders, and soon will leave a lasting impact on generations to come beyond state lines.

 

A report from the TEConomy Partners LLC and Biotechnology Innovation Organization released in 2016 show Alabama’s biotech industry expanding and developing significantly. The “Value of Bioscience Innovation in Growing Jobs and Improving Quality of Life 2016” report is calculated through measuring key factors of industry health such as companies and employees, average wages, R&D expenditures, and venture capital investments. An increase in successful job opportunities and investment in the bioscience division earn the southern state recognition as an emerging leader of bioscience innovation and investment. The Alabama biotech report listed the state’s bioscience industry employment to total almost 14,000 people between 808 companies, a figure demonstrating significant increase in high-paying jobs. On average, the U.S. concentrates 61 percent in academic bioscience related R&D expenditures. In Alabama, bioscience yields 70 percent of total science and engineering investment, positioning the state among the top 10 in the nation for the highest concentration of academic bioscience R&D expenditures. Additionally, Alabama also placed among the top 10 states in the growth of the National Institutes of Health funding which increased from the preceding year by 10.7 percent, totaling $280 million. This funding has been supported by $101 million in venture capital investment in the state since 2012.

 

Bioscience leaders and company executives, including an Alabama delegation, attended the BIO International Convention in San Francisco in June, a large networking conference in the biotech industry. Ted Clem, director of Business Recruitment and Retention Office at the Alabama Department of Commerce, noted the significant positive impact the biotechnology and life sciences industries have had thus far “in generating important innovations that improve the quality of life and creating high paying jobs in our state”. The director further stated that he was “encouraged to see our work in the bioscience industry validated in this report and we remain focused on bringing more bioscience companies and jobs to the state”.

The bioscience industry includes a wide range of intelligence and research, with various opportunities for development. BioAlabama, an organization that represents the industry in the state, identified the main areas of bioscience growth in Alabama: medical devices and equipment; research, testing, and medical laboratories; and drugs and pharmaceuticals. In addition, when evaluating performance, TEConomy/BIO report identified several metro areas in Alabama that ranked highly. For example, the Auburn-Opelika area is one of 32 metros in the U.S. with specialization in at least three of five bioscience subsectors. Carter Wells, BioAlabama board member and vice president for economic development at the HudsonAlpha Institute for Biotechnology said, “This report demonstrates the growing importance of biotechnology to our state economy”. The board member spoke of their determination to continue the growth of the industry through discoveries by research leaders at Auburn, HudsonAlpha, and other principal centers.

Hence, the R&D tax credit could have a huge impact on these emerging companies, particularly as the concentration of academic bioscience R&D expenditures continues to grow. It is recommended that businesses consider contacting a tax professional with R&D credit expertise to assist in their understanding of their eligibility and the claim process. Contact Swanson Reed today to learn more about the R&D Tax Credit and what tax savings you may be eligible for!