We’re dropping a sneak peek of SCACPAcade! These aren’t just sessions — they’re quests. Each one is designed to power you up with tools, insights, and strategies to clear the toughest levels in today’s profession.
This week, we’re loading into Spectator Mode to preview a session led by Brian Wages, CCIP, Principal at Specialty Tax Group. He’s on a mission to uncover hidden tax-saving opportunities and equip businesses with powerful tools to boost cash flow through federal and state tax credits, deductions, and strategic depreciation methods.
Companies can reduce their tax liability and create cash flow by doing regular business activities that will qualify them for both federal and state tax credits and deductions. Investing time and money in a new or improved product, process, invention, or formula can qualify them for the Research & Development (R&D) Tax Credit. The typical best industries for this credit are manufacturers, software developers, life sciences, pharmaceutical, and even architectural, engineering, and construction companies, in certain instances. Qualified start-ups can utilize the credit against the employer portion of payroll withholding. 36 states have a state-level program. The recently passed OBBBA has significant section 174 changes, restoring immediate expensing of domestic R&D costs after 2024, with options to recapture prior amortized expenses.
Cost Segregation is a strategy that accelerates depreciation deductions by reclassifying certain building components into shorter tax lives (5, 7, or 15 years instead of 27.5 or 39). This increases early-year deductions, boosts cash flow, and establishes component values for future remodels or partial dispositions. Applicable to new construction, acquisitions, remodels, or even prior-year assets, cost segregation provides significant net present value benefits. The session outlines qualifying property types, tax considerations, 100% bonus depreciation changes under OBBBA, and gives a practical example of a $5M apartment complex generating $300,000 in net present value benefits through reclassification.
There are also state-level tax credits specific to South Carolina. For example, the Jobs Tax Credit is available for qualifying industries, including manufacturing, R&D, warehousing, agribusiness, and certain service or corporate office facilities. Credits range from $2,500 to $26,000 (depending on the county in which the business is located) per job over five years, with additional benefits in multi-county industrial parks. Small businesses with fewer than 99 employees qualify under relaxed job-creation thresholds (as few as two new jobs), with credit values adjusted based on wage levels.
Specialty Tax Group (STG) (www.specialtytaxgroup.com) helps CPA firms and taxpayers by providing innovative tax planning strategies to secure tax credits and deductions with audit-ready deliverables. We hope that you join us to learn practical strategies to improve cash flow and reduce tax liability through accelerated depreciation, state-level incentives, and federal/state R&D credits.
Maximizing Tax Savings through R&D Tax Credits, Cost Seg, and South Carolina Tax Credits
Thursday, Nov. 20
10:00 a.m.-10:50 a.m.
