Research and Development Tax Credit
What is the R&D Tax Credit?
The Research and Development Tax Credit was originally introduced in the Economic Recovery Tax Act of 1981 and is a government-sponsored tax incentive that rewards companies for conducting R&D within the United States. The credit was implemented to incentivize innovation throughout the economy and to keep technical jobs here in the U.S.
However, what constitutes R&D with regard to the credit is much more expansive than business owners realize, with activities related to applied sciences and other technical projects qualifying companies from numerous industries.
The R&D Tax Credit is for businesses of all sizes, not just your Fortune 500 Companies with research labs – and many companies are eligible, with an expansive list of activities qualifying for the credit.
Opportunities
The Research and Development (R&D) Tax Credit remains one of the top opportunities for businesses to substantially reduce their tax liability.
Companies from a wide-range of industries can qualify for federal and state tax savings high to enough to allow companies to grow their operations, invest in new products/technologies and service lines, and hire new employees.
More companies than ever before can benefit from this valuable incentive.
Qualify for R&D Tax Credits
What Qualifies for the R&D Tax Credit?
If your company performs any of the following actions listed, your business likely is entitled for the R&D Tax Credit:
- Develops or designs new products or processes
- Develops or improves upon existing prototypes and software
- Enhances existing products or processes
Industries Overview
