Ohio – Page 2 – Swanson Reed | Specialist R&D Tax Advisors

Revitalizing the Manufacturing Industry

The Clean Energy Smart Manufacturing Innovation Institute (CESMII) aims to build value in the manufacturing industry by taking advantage of smart technologies including software and sensors. CEO John Dyck says that the institute intends to revitalize US and global manufacturing by tackling the challenges that come with implementing these new technologies, as well as the company data flow issues. For instance, CESMII have developed a basic set of technologies for manufacturers and are funding six month projects to solve specific problems, up to a value of $250,000.

Based in California, the institute is developing regional centers across the US including Texas, New York and plans to expand to the Midwest over the coming year. These regional centers will allow for greater industry specialization.

Ohio could well become home to the new manufacturing center as Dyck lives in Northeast Ohio himself. He stated that, “Not having a presence in the Rust belt is a huge strategic gap.” Furthermore, a potential collaboration with business development organization, Team NEO, may be in the works. Team NEO is interested in increasing Ohio’s adoption of smart manufacturing technology in order to maintain a competitive edge.

CESMII is the ninth manufacturing innovation institute to be developed by the government in order to encourage advanced manufacturing R&D. They attempt to assist manufacturers by organizing support from academics, application vendors and system integrators to solve current issues, with the solutions becoming open-source once completed.

New Material Offers a Revolutionary Way to Power Electronics

A recent finding by a research team stationed at Ohio State University could possibly change how future electronic devices are fabricated.

The Ohio State team worked out a unique way to improve how our electronics utilize electrons. They’ll achieve this using a new material that can serve two distinct roles in an electronic device. The dual nature of the material will eliminate the need for manufacturers to use multiple materials.

“We have essentially found a dual-personality material,” said Joseph Heremans, co-author of the study, professor of mechanical and aerospace engineering and Ohio Eminent Scholar in Nanotechnology at Ohio State. “It is a concept that did not exist before.”

The research team has decided to call this unique material phenomenon and electronic structure “goniopolarity”, to reflect its dual functionality.
If everything works and goes as planned, technologists will be able to avail this discovery to create different sorts of electrical devices, from light emitting diodes in display screens to solar cells. The material can also be used in laptops as well as light sensors needed for our smartphone cameras.

With each device, the material works by moving holes (positive charges) and electrons (negative charges) to conduct electricity. And to complete this process in the past, different materials were needed. One to act as a hole holder whereas the other acts as an electron holder. No material, hitherto, could act as both.

The new material, NaSn2As2, however, is a superlattice (layered crystal) capable of doubling as a hole holder and electron holder simultaneously. The team believes the material works this way due to its exceptional electronic structure. Better yet, the team pointed out there may be other layered materials (yet to be identified) that boast similar properties.

“We just haven’t found them yet,” Heremans said. “But now we know to search for them.”

Ohio’s Shepherd Chemical Expands European Manufacturing and R&D Capacity in Mirecourt, France

Over the past century, the global chemical industry has witnessed a considerable transformation and innovation in terms of high-performance polymers, additives, adhesives, and catalysts as well as sustainable operational processes. One of the major stakeholders in the chemical industry is Ohio-based Shepherd Chemical Company which manufactures and develops technologically advanced, environment-friendly metal-based chemical products. Since its foundation in 1916, the company has been committed to adopt operational excellence and follow customer-based approach that offers direct relations to the clients.

Shepherd Chemical has three main strategic goals: to introduce high performing additives, catalysts and adhesion promoters keeping in view the needs of global customer base; to grow collectively by enhancing and expanding the capabilities of partner firms and to stick to the principles of sustainable development and safe working environment by promoting eco-friendly supply chain as envisioned in United Nations’ 2030 Agenda and Sustainable Development Goals (SDGs).

The investment by the company in research and development (R&D) and the expansion of different areas, e.g. optimizing Ohio operations and the current determination to capitalize 8.5 million USD for the proposed business expansions in Mirecourt site in France, signify the commitment to these goals. The site was previously acquired in 1994 to provide cobalt based rubber adhesion products.

It is significant to highlight that the company invests from a long-term perspective to support the growth of its customers, while also updating the existing product range and bringing innovation to the metal chemical industry. This can be justified by the fact how the company invested in two of its reactors in 2016, and how it is determined to make continuous improvements at Mirecourt as well as Ohio facilities. The installation of the new reactor at Mirecourt is expected to double the production in 2019.

Through providing sustainable and innovative metal chemical products to its customers, the Shepard Company has maintained a leading position in the global chemical industry. The recently proposed investment will help the company to not only increase its production capacity at the global level but also to maintain robust and longstanding relations with its clients and partners.

Innovate Ohio Project To Attract Businesses To The State

Incoming Lt Governor Jon Husted will oversee the Innovate Ohio project, a new agency that aims to entice companies to the state and create jobs. It also plans to develop high tech products to improve government efficiency, stating that those who do not adapt to technological changes will fall behind. It hopes to transform the government by improving customer service, saving tax dollars and moving to paperless systems with new technologies.

One of the technologies in the works is the SmartOhio Operating System, an analytics and data-sharing program for government departments. Ohio business and technology leaders will come together to develop the technologies. Private business and government collaboration will help to bring the government up to scratch on modern technological solutions to improve its services.

The project also aims to increase innovative research and enhance Ohio’s reputation as a leader in computer science. Classroom coding and technology training will be provided to students from K-12 schools to make Ohio’s citizens work-ready for the jobs of the future.

Businesses in Ohio creating technological improvements may qualify for the Ohio R&D Investment Tax Credit. The credit rate is 7% of qualifying expenditures. Contact Swanson Reed for more information or take our online eligibility test.

Honda R&D to Boost Ohio’s Job Count By 175

According to a recent press release by The Columbus Dispatch reports, JobsOhio and Honda R&D Americas, Inc. announced a grant partnership intended to support and promote a growing, high tech workforce at the company’s Ohio Center in Union County.

This scheduled expansion is projected to create around 175 new high tech jobs. Contacts at the Ohio Center (which is also Honda’s 2nd largest Research and Development Center in the world) have been trusted with the task of crafting the advanced technologies, Powersports, and automobile products that can bring value to the clients of Acura and Honda in North America and beyond.

Frank Paluch, the president of Honda R&D Americas said in the news release, “We have been building our team of innovative Honda engineers in the state of Ohio for more than three decades.” “And as Honda takes on these new challenges to meet the future needs of our clients, we continue to fashion a next-generation labor force through investing in our communities, our operations, and our associates to promote the growing high tech presence here in Raymond, Ohio”.

JobsOhio will assist the operation with a JobsOhio R&D Center Grant, a $1.2 Million Workforce Grant, and JobsOhio’s Talent Acquisition services.

JobsOhio’s senior managing director for automotive, Kristi Tanner pointed out that “Honda R&D America’s investment in Raymond, Ohio is an imperative step forward in building the next generation of mobility.”

She was glad Honda decided to work on its cutting-edge innovations at the State Capital, where they can also partner with other firms including 33 Smart Mobility Corridor, Connected Marysville, and TRC.

Through advancing its human interface and driver assisted systems, Honda R&D Americas will finally introduce highly automated driving capabilities and bring us a step closer to a collision-free society. In addition, this new goal builds upon the earlier broadcasted plans for Acura and Honda Vehicles to feature highly automated freeway driving abilities by 2020.

Route 33 To Be Used for Autonomous Car Research

An area of Route 33 will be used for vehicle-to-infrastructure communication tests for autonomous car research. $15 million is being invested in the Smart Mobility Corridor that will run between East Liberty and Dublin. The communication tests will allow autonomous vehicles to talk to highway systems and each other, which could help ease congestion.

Optic cable wiring will occur during the Summer of 2017, although there is no official launch date as yet. The wiring will allow researchers to obtain data from sensors placed along the road, where testing can begin. A partnership between Intel subsidiary Wind River and Ohio State University, the city of Dublin and the Transportation Research Center will be among the first to use the 35-mile section of Route 33 as a test area for self-driving cars. The area is ideal for many US manufacturers, who would prefer not to travel abroad for testing.

The research could be fundamental to the future of autonomous vehicles. A PR statement claimed that the project will aim to “increase the pace, quality and development, testing and deployment of self-driving and other connected vehicle technologies.” As well as testing communication between vehicles and infrastructures, tests will be carried out for related technologies including smart mapping and smart sensing.

The region around the Transportation Research Center has quickly grown into an emerging center for high-tech automotive research. Ohio is clearly emerging as a hub for smart vehicles. “Ohio is in a good position to capitalize on the research and development dollars being invested in future mobility initiatives,” said Michelle Krebs from Autotrader. “It already has a strong automotive base with Fiat Chrysler’s Jeep complex near Toledo and Honda’s significant research, development and manufacturing operations around Marysville.” Honda’s Ohio-based R&D Center is working on introducing autonomous vehicles by 2020 and aim to release a model that is almost completely autonomous by 2025.

If your company is participating in R&D, you may benefit from a state and federal tax credit. Ohio’s R&D Investment Tax Credit is 7% of the qualifying expenditures. Contact a Swanson Reed specialist for more information.

Top States for Doing Business 2016

How does your state rank for doing business? CNBC ranked all 50 states for business using a range of publicly available data. They used a points-based system for each of the 10 categories of competitiveness.

Here are the results:

Workforce

Rating based on education level of the workforce, the numbers of available employees, and the states’ demonstrated abilities to retain college-educated workers.

Top 5

Colorado
Massachusetts
Virginia
North Dakota
Arizona

Bottom 5

Maine
Missouri
Hawaii
Vermont
Kentucky

Cost of Doing Business

Rating based on the competitiveness of each state’s tax climate, as well as state-sponsored incentives that can lower the cost of doing business. Utility costs can add up to a huge expense for business, and they vary widely by state. Also considered was the cost of wages, as well as rental costs for office and industrial space.

Top 5

Indiana
Iowa
Mississippi
South Dakota
Kentucky

Bottom 5

Hawaii
California
Maryland
Connecticut
Massachusetts

Infrastructure

Rating based on the vitality of each state’s transportation system by the value of goods shipped by air, waterways, roads and rail. The availability of air travel in each state, the quality of the roads and bridges, and the time it takes to commute to work was taken into account, as was the condition of each state’s drinking water and wastewater systems.

Top 5

Indiana
Tennessee/Texas
Tennessee/Texas
Georgia
Minnesota

Bottom 5

Rhode Island
New Hampshire
Maine
Connecticut
Hawaii

Economy

Rating based on economic growth, job creation, consumer spending, and the health of the residential real estate market. Each state’s fiscal health was measured by looking at its credit ratings and outlook, as well as its overall budget picture. Also considered was the number of major corporations headquartered in each state.

Top 5

Texas
Colorado
Utah
Florida
Oregon

Bottom 5

Mississippi
Maine
Alabama
West Virginia
Louisiana

Quality of Life

Rating based on livability, including several factors, such as the crime rate; inclusiveness, such as antidiscrimination protections; the quality of health care; the level of health insurance coverage and the overall health of the population. Also evaluated were local attractions, parks and recreation, as well as environmental quality.

Top 5

Hawaii
Minnesota
Vermont
New Hampshire
Maine

Bottom 5

Arkansas
Missouri
Oklahoma
Louisiana
Tennessee

Technology and Innovation

Rating based on support for innovation, the number of patents issued to their residents and the record of high-tech business formation. Also considered were federal health, science and agricultural research grants to the states.

Top 5

Washington
California
Massachusetts
New York
Maryland

Bottom 5

Mississippi
West Virginia
Wyoming
Arkansas
Louisiana

Education

Rating based on the number of higher-education institutions in each state, as well as long-term funding trends for higher education. Also evaluated were several measures of K–12 education, including test scores, class size and spending, as well as digital and lifelong learning opportunities in each state.

Top 5

Massachusetts
Minnesota
Wyoming
Illinois
Virginia

Bottom 5

Nevada
Idaho
Mississippi
Arizona
Alabama

Business Friendliness

Rating based on the freedom each state’s legal and regulatory frameworks provide for business.

Top 5

New Hampshire
South Dakota
Virginia
North Dakota
Idaho

Bottom 5

California
West Virginia
Illinois
Mississippi
Hawaii

Cost of Living

Rating based on cost of housing, food and energy.

Top 5

Mississippi
Kentucky
Arkansas
Alabama
Tennessee

Bottom 5

Hawaii
New York
Delaware
California
Connecticut

Access to Capital

Rating based on venture capital investments by state, as well as small-business lending on a relative basis.

Top 5

Illinois
North Carolina
California
Michigan
New Jersey

Bottom 5

Wyoming
Vermont
West Virginia
Delaware
New Mexico

Many US businesses can take advantage of the state and/or federal R&D tax credit. Please contact a Swanson Reed representative to find out what is available in your state and whether your business qualifies.

BeeHex Move R&D Operations to Ohio

BeeHex is a 3D food production company, best known for their 3D printed pizzas. The company started as a NASA project to produce the first 3D printer to create food for astronauts (3D printing material can be stored for much longer periods than perishable and processed foods.)

Now the company is adapting to sell their printer technology commercially. BeeHex will develop production models of the 3D printers in its new Gahanna lab, which should be available to certain pilot customers by the end of 2017. Co-founder Jordan French believes that “a lot of industries are looking for solutions like this, giving employees tools to do things more efficiently.” Potential targets could include sports arenas, theme parks, restaurants or even the military.

BeeHex uses fresh ingredients to make fresh and freezable, oven-ready pizzas, which is an ideal food for 3D printing as it is constructed in layers.

The company aims to create printers that can take the customer’s preferences into account and make food on-the-spot. They have built an app that allows the customer to choose their preferred pizza size and type of dough, topping and cheese. A conveyor belt that allows robots to then add toppings is also being developed. The technology could make it faster and easier to produce food for consumers with special requirements, without a chef having to learn specialized skills.

Like normal 3D printers, the pizza printer receives instructions from a computer and creates the pizza using layers. However, BeeHex printers use pneumatic systems instead of additive technology to move ingredients around. Initially taking six minutes to print, it now takes only a minute for a 12” pizza. A small sized pizza can then take just two minutes to cook.

Worried about the taste? BeeHex has partnered with Pasquale Cozzolino, a renowned pizza chef, who uses only the best Italian ingredients at his pizzeria, Ribalta. He stated, “I am looking forward to using my experience in the culinary industry to create a pizza that can be 3D printed without sacrificing quality ingredients and taste.”

If your company is using 3D printing, you may be eligible for the federal and Ohio R&D Tax Credit. Contact a Swanson Reed specialist to see if you qualify.

3d printing Food ohio r&d

Why The Government Needs to Get That R&D Tax Credit Renewed

Companies in Ohio may find themselves stuck in a financially difficult position shortly as there is no sign of the government completing the expected renewal of the tax credits as of yet. This is deeply frustrating for those Ohio companies who seek to offset some of their research and development costs.

A Matter of Time:

Whilst it is fully expected that the Treasury will again extend the availability of the tax credits as it has done every time the incentive has expired, there is no confirmation of when this might actually take place as of yet. This does have an effect on the accounting of companies in Ohio and around the US as a whole which may return figures that they were not expecting to. This poses companies with a large challenge when it comes to financial forecasts. The reduction in tax rates that eligible companies receive can account for a good percentage of their tax bill.

Understand the Effects:

It is important that Ohio based companies understand the impact that this could potentially have on their finances and be in a position to claim the tax credits as soon as they are renewed. Advice should be sought from experienced assessors who can give businesses the benefit of their knowledge. The best approach to taxation is always to keep it simple and concise. A good team of professionals such as those at Swanson Read will be able to guide you through the legislation and eligibility requirements allowing you to understand what is available to you and therefore the financial position of your business. This will allow you to plan better for your future.

Plans To Make It Permanent:

It has been suggested, by more than one President, that the R&D tax credits should be made into a permanent fixture by the Treasury. It has after all expired nine times so far in its thirty plus year existence and it has been renewed every time. However, the costs of making it permanent seem to be so high that the government is avoiding this option, preferring instead to keep to the renewal system that keeps businesses in the dark about their finances for long periods of time.

It is hard for any company to function when it is unsure of where it stands financially. It can affect all areas of its operations in the long term. Having the support of taxation professionals to provide the right advice at the right time is a must for any forward thinking company.

The Government and R&D Tax Credit – and How You Can Benefit

The government’s role when it comes to research & development tax credit has always been clear-cut. Without certain government policies, the tax relief brought about by claiming R&D tax credit would not even be available today. The US government is keen to promote innovation and development in the country, and one way of doing this is by encouraging companies to engage in more research & development activities by giving them tax credits and incentives.

The latest news from the government regarding R&D tax credit

One proof of the government’s commitment to promoting R&D in the US is the recent Senate Finance Committee’s passing of the legislation which extends certain tax provisions, one of which is the research & development tax credit. This legislation extends through 2015, and would be retroactively effective until the start of 2014 so that there would be no gaps when it comes to the claiming of benefits.

And there’s more good news, especially for small and medium-sized enterprises: in addition, the Senate Finance Committee has accepted an amendment which allows small and medium-sized businesses to claim research & development tax credit against Alternative Minimum Tax for the years 2014 as well as 2015. This amendment also lets start-up companies claim research & development tax credit for the very first time and gives them the opportunity to take as much as 250,000 dollars of research & development tax credits against their yearly payroll tax. To qualify for this special Start-Up Innovation credit, an enterprise should be operating for less than five years and have fewer than five million dollars in its gross receipts.

How your company can benefit from the government’s R&D tax credit

Today, more and more enterprises are beginning to take advantage of the government’s R&D tax credit. And while it may be difficult to understand how you can qualify at the beginning, a little bit of knowledge and research goes a long way. If you feel that you already have an existing activity that can qualify as research & development, then you can find this out for sure by ascertaining four criteria: whether your R&D activities are done for a purpose which is permitted, whether it is done in order to eliminate uncertainty, whether it undergoes a particular process of experimentation, and whether it is inherently technological (based on the hard sciences, and not the soft sciences). Once you have passed these set criteria, then it is easier for you to begin the process of claiming R&D tax credit for your enterprise.

The important aspect to remember is that claiming R&D tax credit from the government becomes easier if you break it down into different, smaller components. But you need to assess the above-mentioned criteria first, and make sure that your enterprise falls under all of those. Keep in mind as well that there are other R&D activities which may not qualify, such as research that is done after a product or service has already been commercially launched, or research done in order to duplicate an existing component of the business, among others.

The best way to determine your qualification for research & development tax credit is to consult with a professional R&D tax specialist. Swanson Reed is comprised of an expert team of tax specialists who are more than willing to help you ascertain your R&D tax credit qualification. Speak with a representative today to find out how your company can take full advantage of the government’s R&D tax credit program.