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Extra info for Adhesives & Sealants Industry January 2011
6 Billion Total) Acquisitions continue to alter the adhesive supplier structure. In 2009, the top 20 formulated adhesive suppliers captured 47% of the sales value. These companies sold about 55% of the adhesives in North America, Europe, and South and Central America. Their share in the Asia-Pacific region was only about one-third of the total, but it is expected to rise. Many adhesive suppliers augment their sales with related products, which can include sealants, binders, construction products, electronic potting and encapsulating compounds, coatings, etc.
Just some of the expenses that qualify for the credit. S. Internal Revenue Service (IRS) rules, these activities—and many others—can result in substantial R&D credit dollars if they are properly identified and documented. WHAT IS THE R&D TAX CREDIT? The R&D tax credit was created by Congress as part of the Economic Recovery Tax Act of 1981 to encourage American industry to invest in research and development activities. The purpose of the credit was to stimulate R&D activities among businesses through tax incentives.
As a result, IRS examiners are severely adjusting research tax credit claims, even for companies in highly technical industries. Federal and state reviews have become much more onerous and contentious. The IRS has a bias against research credit projects that use a “look back” methodology. The IRS wants to see research credit claims that utilize contemporaneous documentation. By this, they mean documentation that is collected from several sources in real-time to the QRE being performed. , reliability) of the documentation.