Paint & Coatings Industry - January 2009 - (Page 34)

Federal R&D Tax Helps Coatings Industry in Tight Economy W ith the current state of the economy, companies within the coatings industry are looking at every avenue to increase their cash flow and thus their bottom line. Countless companies in the industry have recognized the value in pursuing the Research and Development (R&D) Tax Credit, which has become a financial windfall for many. This R&D Tax Credit is based on the innovative activities conducted by the companies within the industry. One of the main drivers within the coating’s industry is innovation. What may be news to many is that companies of all sizes creating that innovation are eligible for substantial tax relief under the Research and Development Tax Credit Program. It may also be news to most companies that they do not have to be a large, multi-national conglomerate to take advantage of the program; numerous small and mid-sized companies are taking full advantage of the credit. In the tax world, R&D is defined much more broadly than in scientific circles. Research that qualifies companies for the R&D Tax Credit Program includes much more than new product development alone. Expenditures taken to improve existing products as well as to develop or improve processes also qualify. In short, a company’s day-to-day operations may qualify them for this benefit. This is further illustrated by the fact that a vast number of companies miss out on the R&D Tax Credit due to their belief that their daily operations would not qualify, while clearly they would. Support from NAM In a November 2007 letter to the U.S. Speaker of the House, the National Association of Manufacturers (NAM) described the Federal R&D tax credit as “a proven incentive for additional research and development, with each federal credit dollar generating one additional dollar of business R&D. NAM went on to say that this year’s extension of the credit will benefit the more than 11,000 companies that use it By Stephfan Nurse, Associate Director | Affluent Consulting, Tampa, FL 34 JANUARY 2009 | W W W . P C I M A G . C O M http://WWW.PCIMAG.COM

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Paint & Coatings Industry - January 2009 Contents Viewpoint Industry News Calendar of Events Company News Names in the News Synthesis of an Eco-Friendly, General-Purpose Binder Based on Agro-Waste Materials Supplier Showcases – Green Technology Federal R&D Tax Credit Program Helps Coatings Industry in Tight Economy New Generation of Silica-Encapsulated, Ultramarine Blue High-Performance Pigments Cleaning Up in the Coating Business Low-Odor, VOC-Free Renewable Coalescents for Latexes Used in Very Low-VOC Paints Materials Watch Products Classifieds Advertiser Index

Paint & Coatings Industry - January 2009

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