The Texas Barbecue is perhaps one of the most well-known traditions in the Lone Star State – often automatically envisioned, along with images of longhorns or Tommy Lee Jones, at just the mere mention of the state. Indeed, there is no denying Texans are passionate about their favourite barbecue as they are about football and politics. However, has the Texas barbecue been romanticized and is it in actual fact causing cancer?

As part of a new study from The University of Texas MD Anderson Cancer Center, researchers found that meats cooked over an open flame are linked to an increased risk of kidney cancer.  The research, published online this week in the journal CANCER,  revealed that diets high in meat may result to an elevated risk of advancing renal cell carcinoma (RCC) through intake of carcinogenic compounds produced by particular cooking methods, such as barbecuing and pan-frying.  Dr. Xifeng Wu, who led the study, examined 659 patients just diagnosed with kidney cancer and compared them to 699 similar people without cancer. The researchers wanted to analyze not only the link, but to also clarify the factors that might explain it.

In the journal, the research noted that people who consumed the most grilled meat – red meat and chicken alike – had a higher risk of kidney cancer. Furthermore, those with two genetic mutations that already put people at higher risk of kidney cancer were most affected by the grilled meat risk. The study indicates that the open flame is the culprit, with the researchers believing this may be introducing carcinogens into the body. Carcinogens are a term for any element that can cause cancer in living tissue due to the capability to disturb cellular metabolic processes. They are extremely irritable to our system, and can take the form of known cancer-causing substances like asbestos and tobacco smoke.

Nevertheless, Texans don’t have to put down their Texas Sticky Barbecued Beef Ribs for good just yet. Instead, the researchers suggest consuming it in moderation as part of well-balanced diet, complete with fruit and vegetables. Moreover, this news comes on the heels of two new food safety rules the Obama administration released on September 10^th 2015. The new regulations, known as the “Preventive Controls for Human Food rule” and “Preventive Controls for Animal Food rule”, signify a considerable alteration in how businesses operate in the food sector and will entail substantial investment in technological improvements for food manufacturers across the food production spectrum.

Whilst this may be a hindrance for the food manufacturing industry, Research and Development (R&D) tax credit opportunities are one way to reduce the cost incurred by companies in becoming compliant with the new regulations and market patterns. For example, businesses operating in the food and beverage industry must stay up to date with trends in the marketplace, such as, reduction in sodium, gluten-free choices, removing sugar, adding fruits and vegetables to their products, or, as the research above highlights, cooking methods. Therefore, with research and news reports like the above being released and persistent changes in consumer preferences, it is vital for food and beverage companies in the United States to increase their R&D efforts to meet demands and stay competitive.

Indeed, the R&D tax credit can help put cash back into a business and several states, including Texas, offer businesses their own version of the R&D tax credit. Businesses should take advantage of any R&D tax credits available at the state and federal levels as they can claim the credits simultaneously. Furthermore, many companies operating in the food and beverage industry may erroneously believe they are not qualified for the credits. However, the IRS employs a broad definition of R&D and many activities within the food and beverage industry may qualify for generous tax savings. Contact us today to talk to a specialized R&D Tax professional who will be able to help you with your claim.

Oil, often said to be the commodity that underpins modern economies and lifestyles, is in a new downturn. Despite a history of booms and busts, the plunging price of a barrel of oil, which has been cut roughly in half since June 2014, has reached new low prices that were last observed during the depths of the 2009 recession. This price drop has resulted in heavy job losses across the sector.

In Texas, the number of oil and gas job losses is far worse than an industry group originally predicted according to the latest analysis by the Texas Alliance of Energy Producers. When crude prices started disintegrating late last year, Karr Ingham, a petroleum economist for the alliance, originally predicted that the state could lose 40,000 to 50,000 oil and gas jobs during the downturn. However, the additional plunge in oil prices over the summer forced further layoffs across Texas.

In reality, figures from the Texas Alliance of Energy Producers show that the state may have lost as many as 56,000 jobs in the upstream oil and gas sector. In all, 279,600 Texans continue to be employed by oil and gas companies in the state, however those statistics may be inflated, Ingham said. That’s down 8.3 percent from the record employment of 305,000 in December 2014, but still substantially higher than the low point of industry employment during the recession in October 2009, when the number of Texans employed in the oil and gas sector tumbled to 179,200.

Therefore, in light of this news, what can the oil and gas industry do to spur job creation?

One way of stimulating employment is by investing in research and development (R&D). In the past, states concerned with employment growth have used R&D incentives to support job creation policies. Indeed, there have been numerous research studies into how R&D investment helps develop new products and knowledge that drives growth, creates jobs, and improves the national welfare. For instance, a recent study by Huo (2015) revealed that each 1 percent increase in R&D expenditure in the United States raises its employment rate by 0.38 percent. Earlier research by Bogliacino and Vivarelli (2012) also found that R&D expenditure, otherwise known as fostering product innovation, has a job-creating effect.

Furthermore, The National Association of Manufactures (NAM) released a report earlier this year that analyses the economic impact of the R&D tax credit, worth approximately $7 billion annually in recent years. The report, titled A Missed Opportunity: The Economic Cost of Delaying Pro-Growth Tax Reform, strengthens the debate for making the R&D Tax Credit permanent in the United States. The report notes that a pro-growth tax plan, in the form of a permanent R&D tax credit, would add between 492,000 and 522,000 jobs per year, or more than 6.5 million jobs over 10 years.

As shown above, it is clear to see that R&D expenditure can foster job creation. Thus, considering Texas’ recent job cuts, the Lone Star State could cultivate employment opportunities by investing in R&D to develop new technologies, products and processes in the oil and gas industry. Moreover, with traditional forms of energy becoming harder to find, investing in new technologies will be critical in meeting the needs of an increasingly urbanised population and to combat environmental challenges in the decades ahead.

In addition, the government currently offers incentives in the form of tax credits for those engaging in research activities.  In fact, close to $10 billion in credits are awarded every year for undertakings that fall under the IRS’ broad definition of research and development. Frequently, many large and small oil and gas business owners are surprised to discover that their  everyday operations are often eligible. Swanson Reed specializes in the qualification of R&D tax benefits for companies of all sizes operating in diverse industries. If your are conducting business in the energy sector, contact us today to find out if you can benefit from the R&D Tax Credit.

References:

Huo, J. (2015.) How Nations Innovate: The Political Economy of Technological Innovation in Affluent Capitalist Economies. Oxford, UK: Oxford University Press.

Bogliacino, Francesco and Vivarelli, Marco, The Job Creation Effect of R&D Expenditures (June 2012). Australian Economic Papers, Vol. 51, Issue 2, pp. 96-113, 2012. Available at SSRN:http://ssrn.com/abstract=2073082 or http://dx.doi.org/10.1111/j.1467-8454.2012.00425.x

 

Receiving a lump of coal in your Christmas stocking traditionally means that Santa Claus deems you as more naughty than nice.  However, could this tradition be a concept of the past as the nation moves towards renewable energy?

The recently proposed Clean Power Plan by the federal government seeks to combat climate change by slashing carbon emissions from power plants – speeding a nationwide shift from coal to natural gas and renewables. The final Clean Power Plan calls for a 32 percent reduction in power sector emissions from 2005 levels by 2030, equivalent to 870 million short tons of CO2 or the annual emissions resulting from the powering of 95 percent of U.S. homes. According to Obama, that is the equivalent of taking 166 million cars off United States roads. The slash in CO2 emissions will also lessen emissions of harmful co-pollutants; by 2030, emissions of sulfur dioxide will be 90 percent lower and emissions of nitrous oxides will be 72 percent lower, compared to 2005 levels. The Clean Power Plan projects that in 2030, the final rule will have led to net benefits of $26 – 45 billion, avoided 3,600 premature deaths and 90,000 asthma attacks in children, and reduced the average American’s yearly electricity bill by $84.

In relation to Texas, a new study released by the non-profit Environmental Defense Fund has found that the Clean Power Plan will have reasonably marginal impacts on the state because Texas is already on path to meet 88 percent of the carbon emission reduction goals by 2030. The study, Well within reach: How Texas can comply with and benefit from the Clean Power Plan, accentuates Texas’ swift growth in wind and solar power, as well as the state’s copious natural gas resources courtesy of the shale boom. At present, the state is progressively decreasing its dependence on coal-fired power that comprises of greater carbon emissions.

Furthermore, the study predicts that by 2030 Texas will obtain more electricity from renewables like wind and solar than from coal. Currently, Texas is by far the most resource-rich state in the country for wind and solar energy and leads the nation in wind power generation. The report further highlights that Texas is in position to become an even bigger net exporter of natural gas, wind and solar power in the coming years. Moreover, as we mentioned in our previous post last week, Texas runs its own electricity grid that does not connect to those that serve other states. The report notes that in the next 10 years, this electric grid is likely to change more than it has in the past 100 years.

In contrast, several individuals have expressed concerns with the Clean Power Plan, with certain apprehensive states filing law suits. However, a few utilities, including municipally owned Austin Energy, joined Calpine in its November court filing in support of the Clean Power Plan. Larry Weis, general manager of Austin Energy, doesn’t foresee a future for coal and encourages the state to focus on developing its own plan rather than taking a “just say no” defiance through lawsuits against the federal government. In light of this, Weis notes, “states like Texas are really at a huge advantage with this because we have a lot of gas resources and renewable resources…we could really be an example for the rest of the country.”

Indeed, if the Clean Power Plan were to stimulate a new push for an economic way to burn coal in a drastically lower-carbon way, the policy could end up having a truly momentous consequence on climate change. One prominent way the U.S. carbon-reduction plan could seriously combat climate change is if it initiated more technological progress on cleaner ways for the rest of the world to burn that coal. Gina McCarthy, Administrator of the U.S. Environmental Protection Agency, encouraged anxious states to explore creative ways to transform their power sectors in relation to the Clean Power Plan. One way of doing this is through conducting research and development (R&D) in creating more modern and more efficient technologies.

The government provides R&D Tax Credits for companies engaging in R&D activities, which allows firms to produce generous tax savings – including generating cash from their past and future investments. If you’re interested in claiming the R&D tax credits, or want to find out if your eligible, have a chat to one of our R&D tax specialists who will be able to help you with your claim.

If you’re fascinated in the prospect of launching your R&D efforts beyond the bounds of Earth, then the Centre for the Advancement of Science in Space (CASIS) may be the one giant leap you need to make it happen.

Indeed, the final frontier of biopharma R&D is here as life sciences can now be taken to the cosmos. CASIS, the enterprise behind the concept, has the objective of encouraging companies and innovators to take their research to outer space. Apart from appealing to the budding Luke Skywalker’s among us, one may question why a biopharma company would go to the effort of sending their research all the way to the International Space Station (ISS)?

Certainly, sending research on a mission to outer space is no humble task; however, the fact is that space research offers astronomical benefits for biopharma and life science firms. When it comes to actual drug innovation in space, biopharma companies can use the freefall atmosphere as a facilitator for an accelerated model of disease onset and progression. In specific, one of the chief elements that make investment most valuable for pharma and the life sciences is the capability to experience the microgravity environment. Weightlessness offers an accelerated foundation to observe changes to muscle mass and bone density, as well as the effect of drug candidates on their targets.

Hence, this can be extremely helpful when measuring bone loss and muscle atrophy in research. Dr Mike Roberts, the senior research scientist as CASIS, notes, “we’ve learned that some of those effects of that microgravity environment mimic diseases that affect us here on Earth … That loss of bone mineral density is similar to what we see as we age on Earth, the outcome of osteoporosis, our bones becoming more brittle …  It’s an actual opportunity to use that environment as an accelerated model of osteoporosis.” The same is true for muscular atrophy.

However, smaller companies may be disheartened by the hefty price tag of sending research to ‘infinity and beyond’. In relation to this, CASIS stresses that the service is not limited to the wealthiest entities in life sciences, rather CASIS is determined to help get deserving projects to space. Therefore, smaller companies who have relevant R&D that would benefit from the interstellar environment may be internally funded by CASIS.

Aside from internal funding by CASIS, companies engaging in this type of research may be eligible for the government research and development (R&D) tax credits. However, it is important to note that whether you are conducting research in outer space or keeping your feet grounded on earth, scientific research and development are critical ingredients for nurturing biopharma companies. If you’ve been involved in research and development within the biopharma industry, or any other industry, contact us today to find out if you’re eligible for tax savings.

In the dark of night, the clang of pans and plates going into the dishwasher is accompanied by the vibrating growl of a vacuum cleaner in the Lone Star State. To clarify, residents in Texas are waiting until the clock strikes 9pm to run their electrical appliances and unplugging before the sun rises at 6am. These odd hours of operation have surfaced due to wind farms in Texas generating so much energy that several utilities are giving power away for free during this time frame.

Texas, often most renowned for its lucrative oil and gas industry, is actually the largest wind power producer in the country. In fact, Texas’ wind power accounts for roughly 10 percent of the state’s generation and Texas runs its own electricity grid that does not connect to those that serve other states. Whilst offering free energy might seem like a rife for wasting energy from the hours of 9pm till 6am, the concept actually saves the utility company money in the long term. To enumerate, shifting usage away from peak hours equates to lower wholesale prices, reduces the need of having to construct additional power plants, and condenses the burden that an oversupply of wind energy places on the power grid.

As has been noted above, Texas runs its own electricity grid and the abundance of nightly wind power generated here must be consumed here. Wind blows most strongly at night and is inexpensive because of its profusion in Texas and relatively low maintenance cost. Once wind turbines are moving and have been built, upkeep does not cost much money and there is no need for fuel. Furthermore, wind operators have another advantage over other generators due to generous tax breaks, in specific, a federal production tax credit of 2.3 cents per kilowatt-hour that applies to every kilowatt of power produced.

Undeniably, Texas is one of the largest deregulated electricity economies in the country, making it better suited for innovation and easier for companies to create new incentives for customers. As Scott Burns, senior director for innovation at Reliant Energy stated “You can be green and make green.” Indeed, Texas is a unique power market that has the ability to take great strides in innovation for customers. If your company is operating in the Energy field and you have conducted research and development (R&D) activities to create innovative solutions or incentives, you may be eligible for the government’s R&D Tax Credit scheme. This does not necessarily involve experimenting in a white coat or conducting rocket science, rather, activities you may already be conducting may be eligible. Contact our qualified R&D Tax Specialists today to find out if you are suitable to apply for the tax savings.  We will happily conduct a feasibility study, at no cost, to find out if you could benefit from the credit. Make the most of this opportunity to invest in your research and development and watch your business continue to grow and evolve in an increasingly competitive market.

Big data, most renowned for transforming customer-facing functions such as sales and marketing, is now extending to other businesses. In research and development (R&D), for example, big data is being adopted across a range of industries. Increasingly, companies are capitalizing on the big data movement to create competitive advantage and drive strategy to innovate, compete, and capture value. Life sciences, in particular, are at the forefront of utilizing big data and are using real-world data to inform and transform patient care.

Indeed, big data has become a cutting-edge topic in R&D and life science businesses as its potential to accelerate successful drug development becomes more widely recognized. Big data is essentially the collection of large pools of data that can be analyzed to distinguish patterns and make better decisions. Ultimately, it is predicted to become the foundation of competition and growth for firms, improving productivity and generating substantial value for the world economy by decreasing waste and increasing the quality of products and services.

In relation to R&D, companies who can employ big data will increase the productivity and efficiency of research and clinical trials in order to better exhibit clinical benefit and health consequences to researchers, internal stakeholders, physicians and consumers. Big data analytics are informing research and development to produce new technologies that create personalized patient care and treatment options.

Hence, the potential for big data to drive forward the era of personalized and precision medicines make it’s an essential part of a life science organization and their research and development plan. By optimizing innovation and improving the efficiency of R&D and clinical trials, big data can offer vast benefits to firms, in particular, life science businesses. Furthermore, if you have conducted R&D, your company may be eligible for the government’s scheme. In the United States, companies are granted R&D tax credits, which are tax incentives for performing qualified research (not necessarily successful) in the U.S., resulting in a credit to a tax return. If you want to learn more about R&D tax credits, contact a Swanson Reed specialist today for further information.

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Citing a dwindling economic growth to high unemployment rates and stagnant wages, pessimists argue that the United States finest days are in the past. However, are they correct in this assumption?

A new report from the Council on Foreign Relations, Keeping the Edge, claims otherwise. The report analyzes where the United States ranks in key dimensions of economic competitiveness. The findings reveal that on innovation, which upsurges living standards in advanced economies, no other country is close.

For instance, total US research and development (R&D) spending is higher as a share of the economy than since the 1960’s and, in absolute terms, no other country invests as much in R&D as the United States. In specific, at 2.8 percent of gross domestic product, the United States does spend heavily on R&D, however, major Asian economies – including Japan, Taiwan, and Korea – have ramped up R&D spending. In fact, according to the report, by 2020 China is projected to exceed the United States as the world’s largest R&D spender.

Moreover, the report highlights that of the top twenty universities in the world that generate the greatest consequences on scientific research, sixteen are in the United States. However, the report does find a red flag in the United States economic overview. Funding for public universities has struggled under exceptional financial pressure. If they are deprived of incentives or resources to perform high-risk but hypothetically high-impact research, scientists and academics are not as likely to produce transformative research. In light of this, the report concludes that where the United States deficiencies exist, is also where the government can have the largest part in guaranteeing the United States remains prevailing and innovative for decades to come by ensuring policies are put in place.

Nonetheless, the report reveals positive results in relation to the United State. In particular, the findings highlight that when it comes to scientific breakthroughs and commercial innovations, the United States is leading the way due to a heavy spend in research and development compared to other countries. If you have conducted research and development within your company you may be eligible for R&D Tax Credits. Contact us today to find out if you’re eligible.

Undoubtedly, at one point or another, we’ve all probably donned a temporary flag tattoo on our arm for the 4^th of July or dabbled in being a pirate as a child by proudly displaying a skull emblem on our wrist. However, could temporary tattoos now be more than decorative body art and actually monitor our health?

Hospital patients, the elderly, and those with heart problems may soon be wearing temporary tattoos instead of heart monitors or pulse oximeters. In reality, patients won’t be wearing a skull or iron-man tattoo design, but rather a disposable patch that can track patient’s vital signs in a reasonably inexpensive way.

The research, conducted by engineers at the University of Texas, has created a way of swiftly printing low-priced, wearable biosensors. Utilizing principles of 3D printing, the sensors can be printed on temporary tattoo-like material, which sticks on the skin for a week. The team’s aim is to incorporate multiple sensors onto a credit-card-size patch, which could wirelessly transfer vital signs to a doctor’s computer or smartphone. The patches could also track skin hydration, respiration rate and eye activity, and eventually measure oxygen saturation and blood pressure. This technology innovation could ultimately extend to a array of patients – from pregnant women to athletes.

In addition, the printing of the sensor only takes 20 minutes, creates little waste and doesn’t entail a special lab. Professor Nanshu Lu, who is leading the project, revealed she wants to get the cost down to as low as $1 per patch. Undeniably, Texas research and development such as this is fueling innovation in the economy and having profound effects on the way we face medical problems. Aside from Texas, total U.S. research and development (R&D) spending is currently higher than at any other time since the early 1960s (when the space program was initiated). Indeed, it would appear that companies are increasingly aware of how R&D can boost innovation and improve business processes. However, R&D isn’t confined to the medical field or has to equate to rocket science, if you are improving or modifying products or manufacturing processes, for example making a product greener or cheaper, you may be eligible for tax credits too.

In light of this, what effect could your research and developments have on the economy, your specific industry or even just your company? If you are conducting research activities you may be eligible for the government R&D tax incentive – contact us today to see if you qualify.