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Federal and State Research Incentives
Federal Research Credit
The research credit, commonly referred to as the research & development (R&D) credit is an incremental credit that reduces federal income or payroll tax (for qualifying businesses) dollar for dollar. It is calculated as a percentage of the excess of qualified research expenses in a tax year over a base amount. Currently, the law allows a carryback of one year and a carryforward of twenty years.

Qualified research expenses are costs incurred by a business toward the design and development of new processes or products. While hi-tech or software industries typically come to mind when claiming these credits, qualifying businesses vary across many different industries. These include, but are not limited to:
  • Engineering
  • Agriculture
  • Architecture
  • Construction
  • Food & Beverage production (including beer & wine making)
  • Biotech & Pharmaceutical
  • Manufacturing/Fabricating, including precision sheet-metal, plastics, cement fabrication, ironworks, etc.
  • Software & Technology
  • Visual/movie effects/ graphic design
  • Aerospace
  • Textile
  • Tool & Die
  • Environmental & Waste Management

State Research Credits
Many states offer research credits like the federal credit with varying exceptions, limitations, and methods of calculating the credit. California, Arizona, Colorado, Texas, Illinois, Florida, and Pennsylvania are just some states that offer research credits.

Federal Work Opportunity Tax Credit (WOTC)
The Work Opportunity Tax Credits (WOTC) are federal income tax credits available to any business operating within the United States that hires employees meeting eligibility criteria. This includes: long-term unemployed having received unemployment insurance payments, IV-A recipients (member of a family receiving Temporary Assistance for Needy Families); qualified military veterans, qualified ex-felons, employees between the ages of 18-39 who reside in Federally designated communities, vocational rehabilitation referrals, recipients of SSI or food stamps, and long-term family assistance recipients.

Depending on hours worked and qualifying category, each employee can generate anywhere from $1,200, $2,400, $4,000, or $9,000 over their first two years of employment in federal tax credits.

As the application period for an employee's certification is limited to their first 28 days of employment, the process our prompt attention and screening process is critical to securing these credits on behalf of our clients.

"At Marquez Business Incentives we treat every client with personal attention."
         -Joe Marquez, President

We will work with your business to efficiently maximize and secure the tax breaks you deserve in a method that is least disruptive to your business operations.

Marquez Business Incentives
4949 Windplay Drive, Suite 260
El Dorado Hills, CA 95762
Mailing: PO Box 4800
     El Dorado Hills, CA 95762
Phone: (916) 933-9501
Fax: (916) 933-9509
Email: info@marquezincentives.com

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