Anchin’s professionals provide strategic advice concerning portfolio optimization, suggest realistic merger and acquisition strategies, conduct due diligence, assess research and development tax credits, and advise clients in critical functional areas such as pricing and distribution and sales channel optimization.
We are aware of the special challenges the Chemicals and Energy industry faces, including global competition, the difficulty in segregating and tracking qualified R&D expenses, and the importance of increasing innovation productivity. Anchin is well-positioned to provide strategic advice for our clients’ continued growth and success. Our dedicated industry team includes audit, tax and advisory professionals with years of experience identifying issues and solving problems for every type of business within the industry, including:
- Commodity chemicals
- Polymers and plastics
- Chemical (including differentiated chemical and biological substances, pharmaceuticals, and pesticides)
- Specialty chemicals
- Consumer products
- Accounting and auditing
- Cash flow projections
- Flash reports
- Gross profit by product lines
- Chargeback analysis
- Manufacturing and financial information
- Systems recommendations
- Mergers and acquisitions
- Cost containment analysis
- Tax planning
- Tax credits and incentives
- Research and Development tax credits
Research and Development
Does your company qualify for Research and Development (R&D) tax credits? The chemicals industry is an essential component of the U.S. economy, driving innovation for every other sector. The industry’s 10,000 firms produce more than 70,000 products, accounting for more than $800 billion in revenue and touching 96% of all manufactured products. Innovation has long been considered a cornerstone of growth for the industry, with yearly R&D spending of over $55 billion over the past five years leading to new products and processes to meet market requirements.
Most U.S. chemical companies, even those that produce their products overseas, maintain chemical engineers, material development and production teams in the U.S. whose activities may in fact qualify as R&D. Anchin’s professionals understand the important role the chemicals industry plays in keeping the U.S. competitive in an increasingly global economy. Our industry experience, attention to detail and expert judgment result in accurate, highly defendable tax credit calculations. Our dedicated team includes audit, tax and advisory professionals with years of experience identifying issues and solving problems for every type of business within the chemicals industry subsectors, including:
- Basic chemicals
- Specialty chemicals
- Agriculture chemicals
- Consumer products
Our chemicals industry R&D team ensures that our clients benefit from all of the incentives available to them. Anchin helps clients assess their R&D tax credits at all phases of their business, from the time they first consider entering a new market (white space evaluation) and throughout the product lifecycle. We are particularly skilled and experienced at identifying qualifying projects and initiatives in each area of your business and are experts at examining and capturing all allowable expenses towards your company’s research credit.
Anchin works with clients interested in claiming the R&D credit for the first time and those who have difficulty meeting the contemporaneous documentation requirements needed to support their R&D claim. We also assist clients who have had a significant portion of their R&D claim disallowed and those who need to reassess their R&D credit calculation because the nature of their business has changed.
- R&D Tax Credits Case Studies: Chemicals
The following are two chemical company case studies which further illustrate the types of projects and activities that will potentially qualify for the R&D tax
- Is a U.S. ‘Patent Box’ a Good Idea?May 19, 2016
Yair Holtzman, Practice Leader of Anchin's Research and Development Tax Credits Group, Life Sciences Industry Group and Chemicals and Energy Industry Group, shares his thoughts on the proposed "patent box" regime.
- The Agricultural Chemicals Security Credit has expired, but is opportunity still knocking?February 18, 2015
The Agricultural Chemicals Security Credit was applicable to eligible expenditures incurred after May 22, 2008 and before January 1, 2013.
- Catalyzing Innovation in the Chemicals Industry: How the Research and Development Tax Credit Can Benefit Your CompanyMarch 25, 2015
Yair Holtzman and Matthew Bechtold of Anchin, Block & Anchin explain the costs that are eligible for-and computations required to claim-research and development tax credits,
- An Overlooked Tax Benefit: The U.S. Agricultural Chemicals Security CreditJanuary 5, 2011
Introduction The 110th Congress passed the Food, Conservation, and Energy Act of 2008 (Pub. L. No. 110-246), popularly known as the "Farm Bill," in May 2008 over