Tax tips for busy CIOs

Now that tax season is almost upon us, it's a good time for CIOs and their companies to figure out how they can increase their return on investment (ROI) on technology improvements. It's certainly a wise maneuver to consult your company's tax advisors because there are plenty of federal and state R&D tax credits that can provide as much as 15 percent of the wages and contractor expenses involved in qualified activities.

It's estimated that companies will claim $1 billion in R&D credits on their 2007 tax returns--hardly chump change for any company that is growing with new products on the market and others in development. It includes credits for such endeavors as improving storage, security, VoIP and other IT applications. Not to be overlooked are credits offered by states and large cities for jobs, training and IT-type investments within their borders. In addition, other countries also provide R&D credits and it's worth your time and money to find out who they are and if you qualify. For example:

• Canada offers a 20 percent credit to large companies.
• China provides a 150 percent deduction without a requirement that a company's spending increase by 10 percent.
• India allows a 100 percent deduction.

So this year, before a company signs off on its 2007 tax return, plow the ground, and make sure you have taken every deduction that is available for your business, and be sure to look ahead for tax break opportunities in 2008.

For more on tax tips for the CIO:
- Check out this CIO Magazine Article