Professional Documents
Culture Documents
Agenda
Why Youre Here Today & Why Its Important Why Do We Need to Track R&D Expenses? Explanation of Qualifying R&D Projects for Manufacturing Engineering How to Track R&D Expenses Next Steps - Flowchart Questions?
Government uses tax credits to encourage domestic engineering investments Emerson has a very active program to capture all qualified project expenses Tax Savings = Cash Flow!! Expanding focus each year
1st E&D Groups 2nd Mktg/Mgmt support of E&D projects 3rd Mfg Eng projects
$ Tax Benefit
FY08 tax benefit - $446,181 federal tax credit $245,167 state tax credit Approximately 5% of total eligible expenses
Your Involvement
Assist with required IRS documentation needed to support the above credit Identify qualified projects
Elimination of Uncertainty
Re: capability, method, or choice of design
Technological in Nature
Principles of hard sciences
Process of Experimentation
Evaluation of one or more alternatives Trial & error, testing hypotheses
Development of new products or improvements to existing products Prototypes / Pilot models Developing / Improving production processes Development of quality control tests Software used in production / mfg process Software used to perform qualified research Automating and/or streamlining internal manufacturing processes
Research after commercial production Adaptation for particular customer Duplication of existing product or process Management studies, market research, routine data collection Research conducted outside the U.S.
MRxxxx Initiated by 85000 E&D work units, defined by project scope form
They should inform you if they want you to charge to their project.
If you normally fill out a timesheet, code to project number and enter in Oracle.
Either MRxxxx project if E&D group has told you to use it Or EDxxxx project that Lisa Baumann has set up for you
If you dont usually fill out a timesheet, use the Tax E&D Labor Access Database. This is also intended for first-line supervision, marketing, etc.
Located at Intruder\GEN\Tax E&D Labor\TaxE&DLaborFYXX.mdb Enter an estimate of your time spent on the appropriate project numbers Complete entry quarterly If you would like to be added to the quarterly reminder email distribution list, please contact Jennifer Seeley
Invoices & POs Code with appropriate project number & your work unit-account number
For example: ED32MR3SIG / 51170-6316
Invoices & POs Code with appropriate project number & your work unit-account number
For example: ED32MR3SIG / 51170-6962
Flowchart
Review W ork Plan for the Quarter Identify Potential Qualified R /Year and &D Projects Did E &D Group Give You a MRXXX Project to Charge To ? #
&
Yes
No
Yes
No
Yes
No
Questions?
Finance Contact
Jennifer Seeley, x5273