How To Leverage Underutilized Tax Credits To FUND Your Growing Business

Alliance News |

This originally appeared in the New Hampshire Union Leader on October 10, 2022

Written by Kat Clancy, Strategic Development Manager at Leyton

NH businesses have been hit hard by the pandemic and many other changes happening in the market.  Luckily, there are available options to receive funding through Government Incentives and Tax Credits that can have an immediate impact on your bottom line while also allowing businesses to reinvest in their growth. Two largely underutilized credits are the Employee Retention Credit & the Research & Development Credit.  With consistent changes in legislation and credit qualifications around these Government Incentives, it can be difficult for organizations to understand if and how they can claim these funds—leaving a significant amount of money on the table.  Let’s dive into these two credits and how they can have an immediate impact on your business.

The Employee Retention Credit

The Employee Retention Credit (ERC) has been one of the most lucrative opportunities available to many US businesses that have been financially impacted by COVID-19. Due to various updates and changes to the legislation, there remain many misconceptions about business eligibility, which has resulted in an underutilization of this tax credit.

The Employee Retention Credit (“ERC”) under the CARES Act, is a relief measure for businesses which encourages them to keep employees on their payroll. It is a refundable credit that offsets employment taxes. You can receive a maximum of $26k per employee.

Want to see if you qualify for ERC?

  • Your income has been reduced by 20% or more in 2021 compared to 2019.
  • Your business had to close (partially or fully) due to COVID-19.
  • Weren’t eligible in 2020? You may be now! This credit can be claimed retroactively

For example, see how organizations in various industries have recently capitalized on claiming the Employee Retention Credit:

Telecommunications Company | 38 Employees | ERC Claim $550,000

Parking Service Company | ERC Claim $435,000

Healthcare Organization |390 Employees | ERC Claim $435,000

Brewery | ERC $220,000

Dental Solutions Practice | ERC Claim $680,000

Educational High School |  ERC Claim $680,000


The Research & Development Credit

The R&D tax credit is the most underutilized tax credit, but it shouldn’t be! Did you know that over 70 industries are eligible? The R&D Tax Credit is a federal incentive and allows companies to reduce income tax liability in the current tax year and receive a cash refund for taxes paid in the last three (3) years. 

A common misconception is that research and development only take place in laboratories with scientists in lab coast, or in designated research and development departments. The reality is that the R&D tax credit is much more widely applicable, with virtually any industry potentially qualifying. Additionally, most states offer an R&D credit that can supplement the federal R&D credit, and qualifying businesses can claim both!

What activities qualify for the R&D Tax Credit? 

  • Conducting all R&D activity in the US
  • Developing or designing new and innovative products or processes
  • Improving existing products, processes, or prototypes
  • Reviewing the potential of several alternatives or methods during the development or improvement process

Working with a trusted Global Tax Consultancy 

When you choose Leyton, you’re backed by our extensive team of tax and technical experts who will support you throughout your claiming process. We will work as an extension of your business to ensure you the best possible experience. 

25 Years of Global Experience

Backed by 25 years of experience, we’re here to empower your future. 

Maximize Your Claim

We ensure you are receiving your maximum benefit, aligned with the relevant tax code.

Quality Assurance & Transparency

All documentation goes through 2 rounds of quality control & we deliver a report to provide you with full transparency on our calculations.

Audit Support

In the unlikely case of an audit, we have tax attorneys on staff that will support you. 

Founded in 1997, Leyton is a global innovation funding consultancy dedicated to helping businesses improve their performance through Government Grants & Tax Incentives.  Book a complimentary meeting with Leyton to discover your potential tax credit savings.