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Houston businesses must take advantage of R&D tax credits to stay ahead in energy transition

Home > Insights > News > Houston businesses must take advantage of R&D tax credits to stay ahead in energy transition
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March 5, 2020

Houston, TX, 3 March 2020: Ayming US, the international business performance consultancy, today shares insights that R&D tax credits are key to Houston maintaining its energy hub status in the midst of the energy transition.

The company’s most recent report, ‘The Benchmark’ which compares global R&D tax incentives, highlights the US’s qualification generosity and ease of application as providing an extremely optimistic environment for Houston to lead innovation during the energy transition.

“It’s a perfect storm. We know from speaking with many players in the sector that awareness around what constitutes tax relief is not well understood. So there’s a clear opportunity for oil and gas companies to accelerate their move towards more sustainable operations in Houston and globally,” said Hervé Amar, President of Ayming.

The Benchmark uses two clear metrics: generosity of the scheme and ease of application. It highlights that the US scheme offers one of the broadest definitions of qualified activities globally, and that companies can retrospectively claim for up to three years’ worth of work.

With the oil and gas sector facing ever changing market demands, R&D tax credits can be a powerful tool to mitigate risk and relieve pressure on companies. Many lesser known activities can fall under the relief including flow assurance simulations, customization of products to client needs and installation engineering. Product development also needs to be seen as evolution, not revolution – even minor updates can qualify.

“There’s a real opportunity here for US players to be on the front foot. No two R&D tax regimes are exactly alike, and there is a multitude of legislation, interpretation and policy. What’s vital for energy companies will be understanding the activities that qualify but also assessing international R&D incentives to maximize the credit potential across their global organization,” adds Amar.

To access more insights to the global R&D landscape, including country to country comparisons of tax legislation and policy, please download our International Benchmark. 

About Ayming

Ayming is a leading international Business Performance consultancy and has a global footprint. The Group is present in 16 countries: Belgium, Canada, Czech Republic, France, Germany, the UK, Ireland, Hungary, Italy, Netherlands, Poland, Portugal, Spain, Slovakia and the USA with a staff of approximately 1,400.

In the US, Ayming helps businesses investigate and secure R&D Tax Credits across multiple industries for small, medium and large-sized firms.

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