For those of you on a post-Christmas, New Year health kick, giving up your daily brew as part of the traditional detox may not be prescribed this year. With more than half of Americans drinking coffee on a daily basis, the beverage is the most widely consumed stimulant and reports show it can boost daily energy expenditure by approximately five per cent. However, most recently new research from the University of Texas reveals that coffee drinkers may in fact have greater protection against the grim reaper.

In specific, those who consume four to five cups a day had the lowest risk of early death from a whole host of causes – including diabetes, heart disease, respiratory diseases, influenza and even suicide. The study found that those who drank decaffeinated or consumed coffee additives had a lower risk of death too.

The study, which was undertaken by the University of Texas, dissected data from a previous study that spanned 10 years. From 1998 through to 2009, 90,317 adults without cancer or history of cardiovascular disease were observed. They had reported their coffee consumption, along with other dietary and health details, at the beginning of the study.

By 2009, about 8,700 people had died. After accounting for further influences, like smoking, the researchers established that coffee drinkers were less likely to have died during the study than non-drinkers. In fact, people who consumed two to three cups of coffee per day had around an 18% lower risk of death during follow-up when paralleled to those who drank no coffee. The study also discovered that drinking up to five cups per day, or 400 mg of caffeine per day, was not linked with any long-term health risks.

Similarly, another study conducted last year revealed a 20 percent reduced risk of melanoma in those who drank four cups of coffee a day. Likewise, another study revealed that heavy coffee drinkers are more likely to survive colon cancer than those who do not drink coffee.

In light of the study, the Texas research team believes the dark brew could reduce someone’s risk of death by “favourably affecting inflammation, lung function, insulin sensitivity and depression.” Hence, thanks ‘a latte’ to the power of research, giving up coffee this year doesn’t have to make the obligatory appearance on 2016’s  resolution list.

However, one resolution worth noting this year is the continued investment in research and innovation.  Did you know that if you are conducting research you could be eligible for tax benefits? The government encourages businesses within the U.S. to do this by allowing business owners to offset research and development with R&D Tax Credits. Moreover, businesses can take advantage of both state and federal credits and can claim the credits concurrently.  Contact us today to see if you are eligible to claim the R&D Tax Credit.

In the lead up to Christmas joy is often sensed around the nation in the form of Christmas carols, gift giving, and of course, obligatory ‘taste testing’ of gingerbread men. However, this holiday season thanks to congress, joy was also felt by tax payers.  On December 18^th 2015, the US congress provided the ultimate holiday tax gift in the form of the permanent tax breaks. Most notably, for the first time in history, the federal R&D tax credit was made permanent. Thus, prompting the question, how does a permanent R&D Tax Credit impact the nation?

To begin with, a permanent R&D tax credit allows US businesses to confidently invest in research and development without having to worry about whether Congress will extend the credit. Previously, the on-again, off-again nature of the credit influenced future R&D budgets, planning and investment decisions.  Now, businesses may self-assuredly invest in an R&D project without fear of being audited.

Without a doubt, R&D plays a critical role in the economic growth of a country, essentially spurring the innovation and increased productivity necessary for a strong U.S. economy.  Moreover, when R&D is undertaken in the United States, domestic jobs of workers performing research activities are maintained and increased. For every large company performing R&D in the United States, there are many small and medium-sized manufacturers in the supply chain who have employees performing R&D used by their larger customers. In fact, 70 percent of credit dollars are used to pay salaries of high-skilled R&D workers. Furthermore, a recent study on tax reform finds that a strengthened, permanent R&D incentive would increase employment by over 36,000 jobs per year and contribute to annual increases in GDP and investment.

Indeed, a permanent R&D tax credit fuels innovation which translates into new product development, job creation and increased productivity—three key factors necessary for growth in a global environment. Hence, as the R&D tax credit becomes permanent legislation, businesses around the nation should be taking advantage of the benefits of R&D. Moreover, aside from permanency, the PATH Act includes that certain companies—startups that are less than five years old with less than $5 million in annual revenue—will now be able to apply up to $250,000 in R&D expenses against their payroll tax liability. Consequently, expanding the reach of the R&D Tax Credit to smaller companies.

Overall, Swanson Reed believes the permanent R&D tax credit will advantage our clients by providing a reliable funding source. Contact us today if you would like to learn more about the R&D Tax Credit. In the meantime, and in light of the permanent credit, we would like to wish everyone a happy holidays!

Certainty, no metaphorical ‘lumps of coal’ were found in any Christmas stockings from Congress this year. Instead, Congress wholly embraced the holiday season by providing taxpayers with a gift in the form of tax extenders. Hence, has the annual uncertainty and ritual of tax extenders become the Ghost of Christmas past?

Like clockwork, Congress votes on prolonging a set of temporary tax provisions every year or two. Tax extenders, as they are collectively known, are often renewed at the very last minute, providing uncertainty to businesses around the nation.

However, as we mentioned in our post yesterday, the Protecting Americans from Tax Hikes (PATH) Act of 2015 was signed into law on the 18^th December 2015 by President Obama. The package of tax extenders will cost $622 billion over the next decade and permanently extends many popular business and individual incentives.

Undeniably, the Path Act has provided long-term certainty for many incentives. In fact, this year, 52 tax provisions that have expired have either been temporarily extended or made permanent. Almost two dozen are made permanent, including the important R&D Tax Credit.  Since the announcement of the Path Act, advocators have heralded the tax extenders legislation as a stride towards a tax reform.

Traditionally, making extenders permanent is seen as step one for fundamental tax reform because it allows a more accurate revenue target when forecasting feedbacks from changes to the tax code. According to Mark Bloomfield, president and CEO of the American Council for Capital Formation, the permanent tax legislation released last week could bear the possibility of a tax reform. Bloomfield writes that the settlements in the Path Act could be the road map in 2017 for the first 100 days of the new president. Expanding on this, Bloomfield notes that in the first 100 days the new president has his maximum political capital and Congress is inclined to follow presidential leadership.

Nonetheless, whether or not making the tax extenders permanent will fuel a tax reform is yet to be known. However, the bottom line is that the Path Act is essentially good for taxpayers and businesses, as it allows them to plan their activities with increased certainty. Moreover, Swanson Reed welcomes the permanency of the R&D Tax Credit which is vital to our clients. To discuss the credit further, please contact one of our specialist R&D Tax consultants.

It’s been coined pro-innovation, pro-growth, and even pro-America. Certainly, the research and development, proverbially termed R&D, tax credit is no short of bywords. Now the popular credit is set to add another descriptive label to its name – permanent.

Previously, the R&D tax credit has always been temporary since its formation in 1981. In the past 34 years, the credit has been expired 16 times and, on more than one occasion, was expired for almost an entire tax year before being retroactively reinstated. However, on the 18^th of December 2015, House passed a bill that seeks to make permanent a number of federal tax breaks.

Just in time for the holiday season, Congress’s Christmas-tree tax bill contains surprising presents, namely, permanent extensions of tax benefits for individuals that have long been temporary. The Protecting Americans from Tax Hikes Act of 2015 (PATH) was approved by a 318-109 vote, and most notably, makes the R&D tax credit permanent.

Undeniably, a permanent R&D tax credit will allow companies to be able to plan their long term research and development projects with greater certainty. Moreover, with increased certainty comes greater investment into research and development, thus raising innovation in the nation and helping the US compete in a global economy.  The PATH act, aside from making the R&D tax credit permanent, also makes changes to the credit to help more small and medium sized companies utilize it.  In particular, businesses with less than $50 million in gross receipts will be able use the credit to offset the Alternative Minimum Tax (AMT). The credit is obtainable to start-up companies with gross receipts of less than $5 million a year to use the credit against their payroll taxes (capped at a maximum of $250,000) for up to five years.

Now that the credit is permanent, and consequently more reliable for annual planning, it may provide more incentives for business executives to contemplate long-term funding of research and development activities as a line item on their financials. Indeed, the R&D Credit encourages innovation and is a vital incentive for allowing companies to deduct the expense of research, development, and hiring of workers to conduct R&D. To discuss the R&D tax credit further, please contact one of our Specialist R&D Tax Consultants at Swanson Reed.

From mice that can handle their whisky and the cloning of cats to temporary tattoo’s that monitor your health and invisible fish aiding military camouflage – certainly, research and development (R&D) has seemingly made the impossible possible. Most notably, there is one policy that has allowed for the expedition of innovation in the United States, and that is the R&D tax credit.

As we mentioned yesterday, congressional negotiators released a bill this week that described plans to extend various tax breaks. The House and Senate are expected to vote by this week’s end. If passed, the bill would make 20 tax breaks permanent, including the R&D tax credit. The provision would save businesses $113 billion over the next decade, constructing it as the single largest tax break in the proposed package.

Although the nation awaits the announcement from the House and Senate, there has been no shortage of public interest groups supporting the permanency of the credit. Since its formation in the 1980’s, the R&D tax credit has become one of the most widely used apparatuses for motivating innovation in the United States. However it has never become permanent law, but rather, has been renewed and extended 16 times.

Nonetheless, previous research has shown that a permanent R&D Tax credit would lead to high wages for workers and gains in productivity. 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 permanent in the United States. The report believes that a permanent tax credit would promote investments that fund productivity gains and result in greater earnings for workers.  The report reviews scholarly literature to conclude that making the credit permanent could add almost 1 percentage point (about 0.9) to GDP growth on an annual basis. The authors highlight that R&D activity is indispensable to a competitive manufacturing sector and plays an imperative role in an economy.

Moreover, a permanent R&D tax credit would provide a reliable funding source, which as a result, could encourage investment in basic research. Undeniably, research is known to aid in the new development of more cost-effective and efficient technology products and processes. In addition, a permanent R&D tax credit would ensure businesses that they can engage in innovative activities, without fear of getting audited.

Hence, having a permanent credit could boost productivity, innovation, wages, and the GDP growth, leading to US companies being able to more effectively compete in a global marketplace. Indeed, only time will tell if the bills will be passed by House and Senate, however, Swanson Reed welcomes legislation to extend critical tax incentives that are vital to our clients. Furthermore, as the above shows, research and development is essential for our nation’s long-term competitive economic growth. Swanson Reed is a specialist R&D tax firm –  contact us today if you need help submitting your claim, are engaging in R&D activities, or with any questions you may have.

From accounting firms and manufactures to teachers and farmers, there appears to be a tax break for virtually everyone in a recently released package disclosed by congress leaders.

On Tuesday this week, congressional negotiators enclosed an extensive deal to keep the U.S. government functioning through till next September. The final legislation that was revealed encompassed nearly 2, 250 pages and described plans to fund the federal government and extend various tax breaks. It is expected that House will vote on the tax bill on Thursday and send it to the Senate, who is predicted to vote by the week’s end. The legislation follows months of urging by industry and public interest groups and weeks of intense negotiations on Capitol Hill.

Optimistically, there were lots of Christmas presents for businesses and individuals described in the bill. The package reveals a $US650 billion plan to extend a series of tax breaks over 10 years, with $US560 billion of the total in permanent extensions. In specific, the bill, if passed, would make more than 20 tax breaks permanent, providing certainty to millions of businesses and individuals. The remaining breaks would be extended for shorter periods.

Most notably, the bill would make permanent the vital Research and Development (R&D) tax credit and expand the eligibility for start-up companies. The R&D tax credit has been around since the 1980s; however it has always been temporary. The bill would broaden it and, most importantly, make it permanent. The provision would save businesses $113 billion over the next decade, constructing it as the single largest tax break in the package.

In relation to this, Dorothy Coleman, NAM Vice President of Tax and Domestic Economic, noted that the announcement of the tax package offers a particularly encouraging development for the R&D tax credit. In specific, she states that the R&D tax credit is “key to helping manufacturers innovate, compete in a global marketplace and contribute to U.S. economic growth and job creation.” Certainly, a permanent R&D Credit could expedite innovation in the U.S. due to an increased confidence and spending in research activities.

Thus, only time will tell if the bills will be passed by House and Senate, however, Swanson Reed welcomes legislation to extend critical tax incentives that are vital to our clients.

Swanson Reed is a specialist R&D tax firm, contact us today if you need help submitting your claim or with any questions you may have.

From Star Wars themed toys, lunch boxes and t-shirts to Yoda costumes for your dog and Chewbacca stamps – one would almost think they were being force-fed Star Wars merchandise. Indeed, there is no shortage of products inspired the space odyssey film series, prompting the question, has research and development (R&D) capitalized on the movie phenomenon too?

While science fiction films do allow us to experience escapism to a fantasy world, often elements of these futuristic films do inspire subsequent technologies in the real world. For example, previously, we noted four inventions that Back to Future II predicted correctly due to research and development. Hence, in light of the latest installment of the beloved sci-fi franchise having its world premiere last night, we’’ve looked at research inspired by the Star Wars films.

In particular, has the water-technology utilized in the Star Wars films influenced research into renewable water sources? Undeniably, innovative research that aids in the better control of our resources is becoming increasingly important. This is partly due to the Obama government pushing for measures to combat climate change, as exemplified by the Clean Power Plan. With this in mind, research into energy and water technologies is becoming more invaluable as the effects of climate change alter the world’’s conditions.

As any avid fan of the series could tell you, Luke Skywalker and his Uncle Owen are ‘‘moisture farmers’’ on the desert planet of Tattoine. Essentially, their job involves extracting water from the air with a technology known as a ‘’moisture vaporator’.’ Likewise, technology that acquires water from the air is being researched and developed today, along with additional water technologies that address the connection between energy and water. In specific, scientists are currently investigating if we would be able to harvest water on Mars with a similar technology and researchers in Chile’’s Atacama Desert, the driest in the world, are testing fog catchers as a method to cultivate the water in the air.

Certainly, as the world progresses, water and resources are becoming more valuable now more than ever. In fact, according to the World Resources Institute, 33 countries are anticipated to face extreme water stress by 2040. Thus, these technologies, as originally observed in the Star Wars galaxy, could aid society in surviving in progressively dry conditions as climate change develops.

Although Star Wars is science fiction, there is no denying that the genre of fantasy films can inspire innovators to find solutions or new processes. Furthermore, the ‘’can-do’’ spirit, often perceived in these films, can also be observed as part of the culture in start-up hubs, such as Texas or California – – where many of these technologies are being developed. Indeed, that spirit is essential to fuelling innovation in our society.

If you share that ‘‘can-do’’ spirit too and have engaged in research and development than you may be eligible for the government’’s R&D Tax Credit. However, you don’’t have to be a Jedi or creating the next R2-D2 – the IRS employs a broad definition of R&D and many activities across a comprehensive range of industries may qualify. 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.

 

The 1^st of December, while marking the start of coming together for the holiday season, also serves as a day for people worldwide to unite and commemorate people who have passed away due to HIV. This year, World AIDS Day highlighted the fact that 36.9 million people are living with HIV worldwide and 2.6 million of those are children under 15 years old. Whilst formerly a death warrant, advanced treatments and research and development (R&D) over the past 30 years has condensed the HIV infection to mostly a chronic disease in higher income countries. Nonetheless, in 2014 alone, 1.2 million people passed away of AIDS around the world – 150,000 of them children.

In relation to this, due to a $5 million grant from the National Institutes of Health awarded to scientists at Texas Biomedical Research Institute and collaborators at the Food and Drug Administration, UCLA and the University of Pennsylvania, the potential of a post-exposure vaccine is on the perspective. Over the next four years the researchers will evaluate a variation of possible cures, including investigative AIDS vaccines as well as antiviral drugs. The end objective is to successfully cure both infants and children who have HIV infections.

Previously, a vaccine against HIV has yet to be found. While there is currently therapies, titled highly active anti-retroviral therapy (HAART), which can suppress the virus – there is not a cure. HAART has been verified at being successful in impeding and subduing the reproduction of the virus, but as soon as an HIV-infected person discontinues taking the drugs, the virus returns.

Furthermore, a lifetime of medications is difficult and costly, and pre-natal treatment is not always a viable option. Consequently, the goal is to produce a vaccine that can be controlled after birth to avert the virus from becoming revived when HAART is stopped, fashioning a “functional cure.” Leading the study is Dr. Ruth Ruprecht, Scientist & Director of the Texas Biomed AIDS Research Program, who stated that in the relation to the research, “we are excited to launch this study and develop an attack plan against HIV that could both cure and provide a solid defence against further infection.”

While this research is still in the testing phase, the results could have considerable effects on the public health and eradicating the death toll of HIV. If you are conducting research in biomed, or even for your business in any industry, you could be eligible for tax benefits. The government encourages businesses within the U.S. to do this by allowing business owners to offset research and development with R&D Tax Credits. Moreover, businesses can take advantage of both state and federal credits and can claim the credits concurrently.   Innovation can create new opportunities for your business and allow for the creation of new products or solutions to common problems. Contact us today to see if you are eligible to claim the R&D Tax Relief.

Undeniably, a red light in in Thailand means the same thing as it does in Texas. A walk “man” that prompts us to pace across a street in Australia does the same in Austin. Certainly, we drive in landscapes that look fundamentally the same wherever we go. However, new research in Texas has ambitious plans to change the way roads are used.

Whilst somewhat questionable etiquette of horn-honking to crawling down a chocked highway in peak hour traffic has yet to be eradicated, the Texas-based research aims to develop sensors that could harvest clean energy from traffic on Texas roads. Texas Department of Transportation (TxDOT) has awarded The University of Texas at San Antonio (UTSA) and the Texas A&M Transportation Institute (TTI) a $1.32 million contract to undertake the study. The investigation aims to construct and cultivate a system to produce energy generated by the movement of vehicles along the state’s roadways and transform it into economical renewable electric power. Moreover, the ‘system’ would also permit TxDOT to constantly screen the health of roadways to increase traveller wellbeing.

Without sounding too America-and-apple-pie-like, the research is expediting locally made clean energy. In fact, the researchers believe that the ‘smart roads’ project could make Texas a leader in the use of piezoelectric technology.  Specifically, the research team will create piezoelectric sensors which will be placed under asphalt layers. These sensors will utilize the energy generated from moving vehicles to power roadside lights, traffic signals and the like.

Ultimately, the research will form a sustainable foundation of revenue for transportation infrastructure through the generation of clean power. Piezoelectric materials are particularly appealing as they produce power without releasing greenhouse gasses, as fossil fuel-generated power does. Additionally, it entails no supplementary space as solar power does, since the power-generating modules are entrenched into the road layers. If all the research project stages are accepted, the researchers envisage having a complete system ready for implementation within three-and-a-half years.

Thus, as the above highlights, research can be used to develop innovative solutions that impact society and the way energy is conducted. Moreover, the government offers incentives for those undertaking eligible research activities under the Research and Development (R&D) Tax Credit. However, you do not have to be crafting smart roads or utilizing piezoelectric technology to access the benefits – the credit actually encompasses most industries. Contact Swanson Reed today to chat to one of our experienced R&D Tax specialists and see if your research could qualify for generous tax benefits.

Texas, whilst typically acclaimed for its illustrious oil and gas industry, is actually the largest wind power producer in the country and boasts a burgeoning solar power sector. These developments, as well as the state’s copious natural gas resources courtesy of the shale boom, has put the state in a comfortable position in relation to meeting its carbon-cutting goals under President Obama’s Clean Power Plan.

In fact, a 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.

However, rapidly increasing large amounts of renewable energy to the Texas grid bears difficulties – particularly because, as the proverbial saying goes, ‘the sun doesn’t always shine and the wind doesn’t always blow’. In relation to this, Texas-based researcher Paul Chu is endeavouring to combat these challenges by investigating enhanced, cheaper techniques for storing intermittent energy and releasing it when required.

With this intention, Chu is seeking to discover more efficient ways of storing excess magnetic energy in a superconducting coil. As founding director and chief scientist at the University of Houston’s Texas Center for Superconductivity, he is attributed with numerous revolutions in the sector that have delivered the technology closer to the market. Chu believes that energy storage could drive a metamorphosis of the Texas grid, essentially revolutionising it and adding to Texas’ advances in innovation. To elucidate, Chu articulates that “renewable energy doesn’t give you power at a constant rate — it fluctuates, depending on weather or other factors. The grid operates best when the flow of energy is constant. So you want to store energy, and then transmit it when you need it.”

Nevertheless, as is currently stands, storing renewable energy on a large scale across the grid in Texas is expensive, as is the processing cost of using superconducting material. Chu notes it’s hard to forecast when the storage will become economical, but can envision tentative forms of storage aiding Texas in meeting carbon-cutting goals under the federal Clean Power Plan. In fact, his centre is collaborating with the Nation Labs and industry in trying to make this a reality.

Consequently, there is no denying that shifts in global developments, such as clean energy, are fuelling innovation across sectors.  Indeed, research such as Chu’s reveals that Texas is a unique energy market that has the ability to take great strides in innovation.  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.