Activity for product or process improvement must relate to a function

　　You have permission to publish this article its entirety, electronically, or in print at no charge, as long as the resource box is included with the article along with my full signature file for ezines and my Web address (bizmanualz) in hyperlink for other sites. This article is 443 words long. Thanks for your interest.Wouldn’t it be nice to get some of your money back that you have invested in developing policies, procedures and processes for your organization? Well, you can with the recently restored tax credit.$7.6 Billion in Tax Credits are AvailableIn September 2004, President Bush signed the $146 billion tax cut bill restoring the recently expired business Research & Experimentation Tax Credit.

The 18-month renewal of the research and experimentation tax credit, which expired June 30 2004, was the most expensive item with an expected $7.6 billion cost through 2014.Process Improvement QualifiesIf you are spending money on ISO 9000, six-sigma, lean manufacturing, TQM, or any other initiative focused on improving your products Cap Cutting Machine or processes, then you could qualify. This includes software purchases, training courses, labor, and of course the purchase of any Policies, Procedures and Forms products or services.An Immediate Source of CashThis is an actual dollar-for-dollar tax credit against your tax liability and not a deduction. You can deduct all costs in the year incurred. And better yet, these regulations are retroactive, which means you can get a refund for previous years.Requirements to qualifyIf you fit these five basic requirements for research, then you might qualify under the latest regulations.

1.New or Improved Product, Process or Software. Research must derive ways to improve a product or process such as development or improvement of a formula, invention or technique.2.Technological. Research objective must be to discover technological information, based upon principals including computer science or engineering.3.Research Involves Uncertainty or Risk. It must involve uncertainty or risk associated with the design or method of design achievement, not including general business risk.4.Experimentation Process. It must be well-documented and include failed and successful efforts.5.Permitted Process. Activity for product or process improvement must relate to a function, performance, reliability or quality.Your Tax Credits are Waiting for YouThere is no better time to obtain ISO auditor training, well-defined process training, business process consulting, or to get the maximum value out of a helpful key like the Management Procedures Value Series. Tax credits may expire again later in 2005, so act before it is too late.