R&D TAX CREDITS | COST SEGREGATION | SPECIALTY MODELING
WHY BCP TAX SOLUTIONS?
Since 2003, BCP has provided Engineering-based solutions to corporate Tax Departments and Small Businesses. We provide technical and tax consulting expertise in specific niche’ areas of tax that require engineering and information technology subject matter experts (SMEs) to successfully build and defend your interest with the IRS.
Results You Can Trust
In the work we perform, developing complete and audit proof substantiation is core to our service. We traditionally have done corporate Tax work for Fortune 100 and 500 companies, that are under ongoing, annual audits and have successfully defended tax studies at the field engineering team and the appeals level.
Expertise That Matters
Our study methodology places the utmost importance on understanding your needs and concerns and integrates that knowledge into our process to ensure projects provide a complete audit trail and supporting documentation to defend your tax claim.BCP utilizes the full availability of technical Subject Matter Experts in tax, engineering, information technology, and manufacturing to match the right experts with your industry and needs
Since 2003 Serving:
- Electric and Gas
- Specialty Compounding and pharmaceuticals
- Oil and gas
- Information Technology andSoftware
- Construction
- Engineering Firms
- Landfills
- Paper Industry
We Provide:
- Section 174 and 41 Research and experimentation
- Cost Segregation/Unit of Property
- Pollution Control Equipment Studies
- Specialty Modeling
RESEARCH AND DEVELOPMENT (R&D) TAX CREDITS
The Opportunity
The federal government has firmly established that commercial Research & Development (R&D) is to be incentivized as the primary driver of technological innovation. Because of this, the federal government supports business R&D through a tax credit for incremental increases in R&Dspending.
The Challenge
The IRS has taken an aggressive position that requires companies to provide significant engineering and cost nexus support to obtain R&D Tax Section 41 Credit and Section 174 Deduction benefits.
Who’s Eligible
Section 174 and 41 Research and Experimentation(R&E) Tax regulations provide companies of all sizes and from most industries the ability to receive economic incentives for innovation. If you’re a company that invests in attempting to design, develop, or improve products, processes, techniques, formulas, inventions, or software; you may be eligible for this benefit.
ENGINEERING FIRST–The Industry Standard
One of the primary challenges facing tax departments is having the engineering technical expertise to adequately justify and defend tax claims. Because we have the engineering and technical knowledge and the tax expertise, we understand how to talk and maneuver within organizations to maximize internal cooperation and understanding.
Benefits BCP Provide
- Obtained hundreds of millions of dollars in benefits for our clients over the last18+years
- Established track record of building trust with IRS Exam teams and Appeals
- Engineering/technically based studies that are understandable and defensible
- Proven20-Step “Engineering First” Study Methodology that provides “audit proof” substantiation
- Diversity of technical experience
- Flexible approach, serving US Fortune 500 and Small/Mid-sized Business clientele
COST SEGREGATION STUDIES
The Opportunity
Cost segregation is an accepted tax planning strategy utilized by commercial real estate owners and tenants to accelerate depreciation deductions, defer tax, and improve cash flow. Cost Segregation studies provide a means to identify components of your facility and appropriately identify the asset category and accelerated deduction recovery period.
The Challenge
Historically, the same UOP approach has also been used for financial reporting and income tax purposes by Energy Companies. Companies must develop newUOPs that meet new proposed regulations that require identifying systems that perform singular functions within the plant and has components that do not perform separate and distinct functions.
Who’s Eligible
Commercial property placed in service after December 31, 1986 qualifies for a cost segregation study.
Benefits BCP Provide
- Established track record of building trust with IRS Exam teams and Appeals
- Engineering Study Methodology that provides detailed analysis of cost data, agreements, building blueprints, and onsite inspections
- Process meets all requirements of the IRS Audit Guidelines
- Significant ROI opportunity for commercial Properties with depreciable values of app. $750,000+ or Leasehold Improvement projects of $250,000+
SPECIALTY MODELS
The Opportunity
IRS regulations often provide indirect opportunities to taxpayers and/or require specialized analyses to support various taxpayer positions. In these circumstances, Companies often need to develop one-off, defendable models to support their tax claims.
The Challenge
BCP has developed several analytical models to support various tax positions. Two such models are the warranty Cost Modeland a Fair Market Value (FMV)Model for historical warehouse inventory.
The Approach
Warranty Model
BCP is developing a data-driven risk and statistical-based model to develop the cost of warranty estimates associated with routine and non-routine capital equipment purchases. The model applies the principles of Probability Risk Analysis (PRA).
Fair Market Value (FMV) Model
BCP developed a unique methodology to evaluate and determine the historical FMV for warehouse inventory. The approach developed was based on asset components and included an assessment of the marketplace during that time period for available and willing purchasers
Benefits BCP Provide
- Engineering based models
- Utilizes the science ofPRA (ProbabilityRisk Analysis)to develop statistically valid models
- Customized to meet the specific Client needs
- Full support of the BCP Engineering and Tax Professionals
- Defendable basis
- Models are constructed to be easily updated and managed
