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
- Finally Some Digestible Meal and Entertainment GuidanceOctober 3, 2018
On October 3rd, the Internal Revenue Service released Notice 2018-76 providing transitional guidance on how the Tax Cuts & Jobs Act changes to the deductibility of Entertainment expense affects the 50% deductibility of business Meals that taxpayers and professionals had been hungering for. While the guidance is transitional, it provides clarity on some of the issues we had previously provided comments on:
- Tax Cuts and Jobs Act Substantially Limits Meals and Entertainment DeductionFebruary 14, 2018
The 2017 Tax Cuts and Jobs Act introduced some significant limitations to the meals and entertainment deduction. The new law makes two major changes to the meals and entertainment rules, which can impact your business.
- Tax Cuts and Jobs Act Offers Favorable Tax Breaks for BusinessesDecember 28, 2017
The Tax Cuts and Jobs Act (TCJA), which was signed into law on December 22, contains a treasure trove of tax breaks for businesses. Overall, most companies and business owners will come out ahead under the new tax law, but there are a number of tax breaks that were eliminated or reduced to make room for other beneficial revisions. Here are the most important changes in the new law that will affect businesses and their owners.
- The Tax Cuts and Jobs Act Doesn’t Cut the R&D Tax CreditDecember 27, 2017
On December 22nd, President Trump signed the Tax Cuts and Jobs Act of 2017 (“TCJA”) into law, setting the stage for the most sweeping update to the U.S. tax code since 1986 tax reform enacted under President Reagan. The centerpiece of the TCJA, is a permanent reduction in the corporate tax rate from approximately 35% to 21%. Thankfully, as expected, the final law has preserved the research and development (“R&D”) tax credit, which was made permanent in the Protecting Americans against Tax Hikes (“PATH”) Act of 2015.
- U.S. Research and Development Tax CreditOctober 30, 2017
Yair Holtzman, Leader of Anchin's Research and Development Tax Credits Group, explains how the credit works and shares his findings on the impact of the PATH Act.
- 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.
- How Does Tax Reform Impact You?
Opportunity Zone Proposed Regulations Issued: What Was Answered10/22/2018 Finally Some Digestible Meal and Entertainment Guidance10/3/2018 Philanthropy and Tax Reform: Is it Advantageous to Accelerate Contributions?9/27/2018 529 Plans and
- Refueling innovation in the US chemicals industry by taking advantage of the research and development tax creditAugust 1, 2018
It is worthwhile for any US based business in the chemical industry that is attempting to innovate to consult with an R&D tax credit professional if they are not already claiming this credit. Even if a company is already claiming this credit it is worth examining to ensure this benefit is truly optimized.
- 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