Number 2: To properly claim and compute the refund/credit you need to understand the complicated formulas the State has established for business types that qualify. You will also need to know which expenses qualify.
Number 3: The refunds/credits can be used in three ways:
a) refunds can go back three years for new businesses.
b) credits can be used to offset past tax, going back up to four years.
c) credits can be carried forward 8 or 10 years, again offsetting tax.
Number 4: The credits/refunds available are substantial and if incorrectly taken or computed could lead to large audit liabilities.
Many businesses in this industry are not taking these credits. It may be that they do not know about them or how to compute them. Whatever the reason, we can explore a possible refund/credit and quantify the amount for any such company.
It is also important to remember that in many instances bio-tech/bio-pharmaceutical do not make sales during the research and development phase, but are still required to pay sales and use taxes on consumable supplies, machinery and equipment, etc. used in the business.
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