Energy – Page 6 – Swanson Reed | Specialist R&D Tax Advisors

Solar for All Initiative Encourages Energy Companies To Innovate

Under the Future Energy Jobs Act (FEJA), Illinois developed the Solar for All initiative. The program was developed to address existing barriers faced by disadvantaged communities when accessing renewable energy. It will offer affordable solar technology to those who cannot afford solar panels or are renting. The initiative aims to transform how societies develop, benefit and interact with clean energy by providing incentives to solar companies to develop technology that will lead to savings on solar energy bills.

With a budget of $30 million per annum, Solar for All also includes FEJA job training and basic statewide education as well as ensuring that funding goes to environmental justice communities.

Funding has been sourced from the Renewable Energy Resources Fund along with two of the state’s utility budgets for renewable resources.

Under the initiative, there are four subprograms for different customer and project types. These are: low-income distributed generation, low-income community solar, non-profits and public facilities and pilot projects. Developers apply for incentives in one of the subprograms and are paid once the work is complete, with the customer receiving the panels without being required to pay for installation.

The projects will provide benefits for both the community and environment, with the creation of new jobs and subscription plans offered to residents. Projects also require collaboration with community organizations.

This innovative program illustrates the active steps being taken by Illinois to encourage research and development and transition to clean energy.

AMS Corp. Receives Funding for Nuclear Research

Analysis and Measurement Services Corp. (AMS), a Knoxville-based nuclear engineering firm, will receive approximately $2.8 million in funding from the United States Department of Energy. This funding will support extensive research on testing electrical cables in nuclear reactors, specifically for age-related wear.

AMS Corp is one of the eleven firms across six states that received a collective funding amount of $18 million to boost advanced nuclear technology development in the United States. Rick Perry, the US Secretary of Energy stated that nuclear energy plays a critical role in achieving clean energy and economic objectives. Perry further added that the funding epitomizes the collaborative efforts crucial to the development and implementation of local innovative nuclear technologies. AMS is a global nuclear engineering consultancy firm that specializes in the testing of power-plant-related equipment.

A point worth noting is that AMS Corp expects the studies and tests to cost around $3.5 million. From this, approximately $700,000 will stem from sources other than the Department of Energy. The different projects by the winning firms are to be cost shared and hence will give room for high-level collaboration by stakeholders. These include participants from private and public laboratories, institutions of higher learning as well as local entities.

This round of grants is the third since April. It leads to a total of $98 million, with more to be distributed over the next four years on a quarterly basis. As such, it is clear that research and development (R&D) in the state of Tennessee is on the rise, and the concerned stakeholders are actively playing their part in respect to nuclear innovation, research and testing.

Smithfield Foods Is Working To Reduce Greenhouse Gas Emissions By 25 Percent

Smithfield Foods Inc. specializes in meat processing in the United States and is owned by the WH Group of China. The company recently announced innovative biogas projects that have been specifically designed to aid in the reduction of greenhouse gas emissions by up to 25 percent by 2025, which will help contribute to the national move towards clean and renewable energy.

In Missouri, Smithfield has engaged itself in a collaborative effort with Roeslein Alternative Energy (RAE). The two will be working to launch a second phase of an already existing project that converts manure into renewable natural gas (RNG). The company owns numerous farms that source the manure and the energy created is efficient enough to power an approximately 15,400 homes annually. Biogas infrastructure will be installed on the company’s Missouri farms during this second phase. Senator Roy Blunt noted that the initiative by Smithfield in Missouri will boost the state’s input with regards to energy security in the country. As such, the state has an important role in the contributing to global food demand and renewable energy.

For some time, Smithfield has been actively involved in prairie restoration efforts in Northern Missouri. Another aspect of the initiative involves harvesting prairie grass to generate methane. This will serve as a biogas generation supplement for use during winter in particular. This company also boasts of being the first food company to engage in Monarch Butterfly Exchange Program. The program’s purpose is to restore the insect’s habitat on private property including Smithfield hog farms. It is evident that the firm is innovative for a food company, with its engagement in the creation of renewable energy as well as conservation activities.

Oil and Gas Sector Addressing Climate Change Through Innovation

Economic growth, American security, and environmental sustainability are areas being enhanced by the oil and natural gas industry. This industry has been a leader in energy development due to its engagement in modern technology, which has consequently led to more efficient exploration with minimal environmental impact.

Research and development in the industry has led to cleaner, safer gas development throughout Colorado. As such, the results are evident. By the end of 2017, a 33 percent drop in emissions from natural gas and oil was expected. Another illustration would be the 52 percent increase in natural gas production from 1990 to 2015. Despite this, methane emissions were able to drop over the same period by 16.3 percent. This decline can be attributed to investment in more efficient equipment, better leak detection measures and other innovations. It is also worth noting that since 2000, this sector has invested $15 billion on non-hydrocarbon technologies that include biofuels, solar, geothermal and wind technologies.

Moreover, partnerships in the oil and gas industry have seen influential professionals from various parts of the world come together to address key issues such as climate change and sustainability through innovation, policy and business solutions. Technologies such as artificial intelligence are being employed in the various activities to make more informed exploration decisions. Companies such as BP and ExxonMobil are notable enterprises that have engaged in research and development in Colorado for biofuels, energy efficiency, carbon capture and more. This has led to increased engagement in environmentally sustainable activities in the sector, while at the same time offering solutions and economic boosts to the state.

A solar powered stove and battery to rival Elon Musk? Mark Cuban is interested

“Do you think you can put the fear of God in Elon Musk and put them out of business?” asked Mark Cuban on Shark Tank, a reality show about investors and entrepreneurs. His question was directed at Dr. Caitlin Powers, the CEO and founder of One Earth Designs. Elon Musk, the Tesla mastermind, had acquired SolarCity, a solar power business, in 2016. Powers, in contrast, had invented a solar powered stove that harnessed the energy of the sun to produce a powerful, fuel-free grill and her company was also in the process of developing a solar battery. Powers appeared on Shark Tank in hopes of securing an investor for One Earth Designs.

“Yes, I think we have the potential to do that,” she confidently responded. Powers received her doctorate from Harvard University and her solar energy research has been recognized by the US National Science Foundation, US Environmental Protection Agency, and the American Institute of Chemical Engineers. From her travels in the Himalayas, Powers had witnessed firsthand the negative effects of fuel-based indoor cooking among nomads and farmers living in resource-strapped regions. Her solution: the SolSource stove. With its unique geometrical design, it can convert 92% of the sun’s energy directly into cooking power at up to 392 degrees Fahrenheit. It also heats up five times faster than a charcoal grill. “As long as you can see your shadow, you can cook with SolSource,” according to Powers.

Compact, clean, and safe to use, the SolSource stove is a sustainable alternative to fuel-based grills. The original Solsource is priced at about $499 while the newer SolSource Sport is currently sold at $299. The Sport is a quarter of the weight of the original source, making it more lightweight for a variety of settings, from the beach, to the park, to the wilderness. From Powers’ pitch, especially her future plans to develop the solar powered battery, Cuban agreed to invest in One Earth Designs. Cuban would be pleased to know that Kimbal Musk, Elon Musk’s brother, is also fan of the SolSource grill and has tweeted pictures of himself using the product.

Developing solar powered products that could rival the likes of Elon Musk? You could be eligible for the R&D Tax Credit and can receive up to 14% on your expenses. To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Swanson Reed regularly hosts free webinars and provides free IRS CE credits as well as CPE credits for CPA’s. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Luck should have nothing to do with it: Lessons from Hurricane Harvey about Resilient Technology

Restoration projects continue in the aftermath of Hurricane Harvey which had devastated Houston’s infrastructure. Although the destruction was not as bad as it could have been, experts believe that with the increasing likelihood of future deadlier storms, the Lone Star state should invest in more resilient technology. Karl R. Rábago, executive director of the Pace Energy and Climate Center, said in regards to the disaster in Houston, “We’ve dodged a bullet. We should honor our good fortune by not relying on it next time.”

This resilient technology should be directed towards flood management, sustainable power, and ensuring that critical services like fire stations and hospitals could continue to operate in the midst of disasters. During Hurricane Harvey, the W.A. Parish Electric Generating Station, one of the largest power plants in America, had been unable to generate power because of flooding. Water had clogged the station’s conveyor belt, preventing coal from moving throughout the plant and from generating electricity. Consequently, for the future, Joshua D. Rhodes, a postdoctoral researcher at Austin’s Energy Institute at the University of Texas, said, “We’re going to design power plants and oil and gas refineries with flooding in mind. Anything you don’t want to get wet, you move up.”

Diversity of power sources are important as well. Daniel Cohan, a civil and environmental engineering associate professor at Rice University, asserts that Texas should invest in other types of power technology, not just coal and nuclear. Cohan does not believe the solution to resilient technology is to have “a 90-day mountain of coal next to the power plant.” Rather, renewable energies should also be considered.

Additionally, microgrids could help maintain the utility grid, especially near critical services. Because they are local, onsite power generators that are disconnected from traditional power grids, microgrids can still supply electricity into neighborhoods even when the main grids are cut off. According to the Department of Energy, “Depending on how it’s fueled and hot its requirements are managed, a microgrid might run indefinitely.”

Are you engaging in R&D to build more resilient technology? You could be eligible for the R&D Tax Credit and can get up to 14% on your R&D expenses, even if your experiments were not successful. To find out more, please contact a Swanson Reed R&D Specialist today.

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Swanson Reed is Texas’ largest Specialist R&D tax advisory firm, offering tax credibility assessments, claim preparation, and advisory services. We manage all facets of the R&D tax credit program in Texas, from claim prep & audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPA’s. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative

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18 billionaires from Dallas-Fort Worth make Forbes’ 400 Richest Americans List in 2017

Forbes released its annual 400 Richest Americans list on Tuesday, October 17 and the verdict is in: 18 of the 34 Texans who made the cut call Dallas-Fort Worth “home”.

The richest Texan is Alice Walton, 68, the Walmart heiress who resides in Dallas-Fort Worth and whose estimated net worth is at $38.2 billion. She ranks No. 13 on the Forbes 400. She is an active curator of art, serving as Chairman of Crystal Bridges Museum of American Art in Bentonville, Arkansas and having supported the Amon Carter Museum of American Art.

Texas’ economy is diverse but its main sources of wealth are oil, gas, and pipelines. The Forbes 400 reflected this with Robert Bass, Ray Lee Hunt, Trevor Rees-Jones, and Sid Bass among DFW residents in the Top 400 whose fortunes were built on oil. Others like Andrew Beal and H. Ross Perot Senior and Junior made their wealth through real estate. Sports also played a role, with Dallas Cowboys owner Jerry Jones, worth an estimated $5.6 billion, rounding out the top three richest Texans and No. 95 in the country. Dallas Mavericks owner Mark Cuban has an estimated $3.3 billion, making him the 21^st richest Texan. Cuban is also an investor on the television show, “Shark Tank.”

Bill Gates remains the richest American, with $89 billion. Jeff Bezos, Amazon founder and CEO, claimed the No.2 spot with $81.5 billion, replacing Warren Buffett who previously held title for fifteen years and now sits at No. 3 with $78 billion. Facebook’s Mark Zuckerberg rounded the top four Richest Americans with a net worth of $71 billion.

2017 has proven a successful year for the country’s wealthiest Americans. Forbes’ 400 criteria jumped from 2016’s $1.7 billion net worth threshold to $2 billion. The Forbes 400’s total net worth is $2.7 trillion compared to last year’s $2.4 trillion.

Despite the minimum increase, 22 newcomers made the Forbes 400 list with 14 of them being self-made entrepreneurs. Notable innovators include Don Vultaggio, founder of Arizona ice tea and Tito Beveridge who created Tito’s Handmade Vodka. Netflix founder Reed Hastings also notably landed a spot on the Forbes 400 with an estimated $2.2 billion.

Are you an aspiring entrepreneur in Dallas-Fort Worth engaging in R&D to develop new products and maybe one day make the Forbes 400 Richest Americans List? You could be eligible for the R&D Tax Credit and can receive up to 14% on your expenses. To find out more, please contact a Swanson Reed R&D Specialist today.

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“The future is all electric” – General Motors announces a lineup of electric cars by 2023

Auto industry leader General Motors announced yesterday that it aims to introduce a lineup of 20 electric cars by 2023 with two electric models to appear on the market within 18 months. Mark Reuss, GM’s Executive Vice President of Global Product Development, Purchasing, and Supply Chain, said, “General Motors believes the future is all electric.”

The announcement follows a growing pattern in the auto industry where other major players like Volvo, Jaguar Land Rover, and Mazda are committing to electric cars. Volkswagen and Audi likewise shifted their focus from diesel to electric. This trend is fuelled in part by several countries’ decision to ban internal combustion engines powered by diesel and gas in the future. Countries include China, India, and the United Kingdom.

GM’s lineup will include a broad array of vehicles, from pure electric-powered cars to hybrids and even vehicles using hydrogen-fuel-cell technologies. Traditionally, hybrids with their gasoline-powered engines and electric batteries have demonstrated a safe option to break into the fuel-efficient market. Hydrogen-fuel-cell power, in contrast, poses a greater market risk. This technology involves converting compressed hydrogen into energy and releases only water vapor as waste. However, major improvements to existing infrastructure is needed before hydrogen-powered cars can enter mainstream use. Currently, only California, particularly in Los Angeles and the Bay area, has the infrastructure to maintain hydrogen cars.

Despite controversy surrounding hydrogen power, GM has been working on a hydrogen cell battery since 2015 and hopes to begin production by 2020. Building on its Chevy Bolt electric car technology, GM recently introduced the Silent Utility Rover Universal Superstructure (SURUS). The SURUS is a hydrogen powered vehicle with a four-wheel drive that runs on two electric motors. GM hopes the SURUS will be used as delivery trucks and even ambulances in the future. There is still of course, room for improvement. As Reuss told The Verge, “Whatever we do, from an electrification stand point, the next version will be better than the version we have on the road.”

Are you experimenting with prototyping different electric and hydrogen powered vehicles? You could be eligible for the R&D tax credit even if you haven’t begun production yet. To find out more on the R&D tax credit, please contact a Swanson Reed R&D Specialist today.

Swanson Reed regularly hosts free webinars and provides free IRS CE credits as well as CPE credits for CPA’s. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Automotive Infrastructure manufacturing R&D Tax Research Tax Incentive

Increase in R&D Activities Prove to Aid in Automotive Lithium Ion Battery Market

The automotive lithium ion battery market is showing steady growth, thanks in part to an increase in research and development (R&D) funds provided by the R&D Tax Credit.

Many countries are trying to lower their dependency on gas and diesel for transportation, and focus more on sustainable fuels. This has been driving companies to look to alternative sources of energy. However, until recently there has been little advance in battery technology due to high production costs and a limited availability of the rare materials required. But with the rise in popularity of electric cars, the global lithium ion battery market is expected to increase rapidly; and R&D credits are fueling their development.

Along with R&D tax credits, there are a number of other incentives that the government is providing for this sector. The Internal Revenue Service (IRS) are giving tax credits of $2,500-$7,000 per electric vehicle purchased in the United States. with some states also providing rebates (e.g. $2,500 in California, $1,000 in Delaware and $5,000 in Colorado) towards the purchase of an electric vehicle.

These government incentives and the growing consumer desire to use clean fuels will continue to drive the demand for electric vehicles; and subsequently the demand for improved lithium ion batteries. R&D credits will prove invaluable in helping companies overcome the high cost of developing and improving new battery technologies.

Although the electric car market is still in its infancy, the projected future looks very promising, thanks in part to R&D Tax Credits. If you would like to find out how your company could benefit from R&D Tax Credits, contact a Swanson Reed R&D Tax Advisor today for an assessment.

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Fostering Innovation in the Energy Sector

Innovation helps to develop the economy, create jobs and improve our standard of living. In recent years, we have seen innovation hubs popping up all over the world. Innovation is not only created through research institutions but through experimental research and development activities in commercial environments. In fact, many experts cite collaboration between industry and researchers as crucial to successful implementation of innovative ideas. Building an environment that fosters innovation requires mindful effort on behalf of the government, academia and business.

Jon Creyts and Curtis Probst from the Rocky Mountain Institute recently wrote an article regarding innovation in the energy sector. They mentioned that America’s early success in clean energy was greatly influenced by research and development funding, which encouraged businesses to innovate in the sector and created incentives for greater risk-taking. Creyts and Probst believe that whilst stability is important for capital providers, a portion of their financial system must provide adequate risk capital to support higher risk ventures.

Furthermore, although laws and regulations have an important place, they can increase business costs and stifle innovation at the same time. Creyts and Probst argue that innovative technologies (such as rooftop solar power) can reduce the costs of business as well as the negative effects of energy production on the environment, and therefore regulators need to leave room for experimentation.

It is imperative that today’s energy companies keep up with the rapidly changing sector. Many new technologies are emerging and challenging current energy production methods. This change will affect all industries as economies rely heavily on energy usage.

To assist with the transition, federal and state R&D tax credits are available for energy companies investing in qualified innovative activities. Companies can find out whether their project is eligible for the credit by contacting Swanson Reed R&D Tax Advisors. Tax incentives and disincentives allow policies to favor positive outcomes such as clean energy and discourage less desirable outcomes such as the burning of fossil fuels. Incentives can help to increase the speed that clean technology is adopted and allow for further research and development to be undertaken in order to improve existing technologies. By investing in research and development for clean energy, governments can save significant amounts of money that would otherwise be spent on conventional energy infrastructure.

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