fbpx

< Back to Thought Leadership

2016 Tax Savings Opportunities to Explore for Manufacturers

According to Blue & Co. and LEA’s 2017 National Manufacturing Outlook and Insights survey, 44% of small manufacturers (those with fewer than 100 employees) and 19% of large manufacturers expect revenue growth of more than 10% in 2017. Another 50% of small manufacturers and 30% of large manufacturers expect revenue growth in the 3% – 9% range.

This is a very good sign for the industry.

One of the challenges in fueling this growth is developing additional cash flow strategies to support investment in R&D, Capital Expenditures, Increasing Labor Costs, and Acquisitions – which were all identified as top priorities in the survey.

That is why it is important to revisit tax saving opportunities with the changes to the R&D tax credit that were incorporated into the 2015 PATH Act. Beginning in 2016, qualifying taxpayers (S-Corporations, partnerships, sole proprietors, etc. with average annual gross receipts of $50 million over the previous three years) can now claim the credit against their alternative minimum tax (AMT). Previously, the AMT had greatly limited the benefit of the credit for many of these taxpayers. Additionally, the R&D tax credit can be used to offset payroll taxes up to $250,000 for certain qualifying startup entities.

It’s not too late to claim the credit against your 2016 income tax liability and generate cash savings that can be reinvested for future growth. To discuss how this credit can help fuel your growth, contact Mike Wade at mwade@blueandco.com or 502-992-2597.

Read More Thought Leadership Articles Like what you read? Subscribe to our newsletter. Click Here.

Blue & Co., LLC Announces New Partnership With Vsimple | Vsimple and Blue and Co logo

Blue & Co., LLC Announces New Partnership With Vsimple

CARMEL, Ind. (May 5, 2022) – Blue & Co., LLC is excited to announce our new partnership with Vsimple, a workflow management software company based in New Albany, IN.  Blue & Co and Vsimple will be working closely together to address the workflow and process improvement challenges of manufacturers throughout the Midwest. “At Blue & […]

Learn More
Proposed Rule FY 2023 for Skilled Nursing Facilities

Proposed Rule FY 2023 for Skilled Nursing Facilities

It is that time of year again! The Center for Medicare and Medicaid Services (CMS) has issued the proposed rule that would update Medicare payment policies and rates for the fiscal year (FY) 2023’s Skilled Nursing Facility (SNF) Prospective Payment System (PPS). The Patient Driven Payment Model (PDPM) was implemented on October 1, 2019. This […]

Learn More
Coverage Scheduling Solutions for Physician Practices and Hospital Systems

Scheduling Solutions for Clinician Work-Life Balance

One of the most challenging conversations in any multi-physician practice or specialty-based hospital employed group is about how to create a fair distribution of on-call and/or inpatient hospital service coverage while balancing the duties of an outpatient practice. The COVID-19 pandemic has contributed to clinician burnout, and physicians and Advanced Practice Providers (APPs) place significant […]

Learn More