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.
The R&D tax credit is designed to inspire and encourage innovation.
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.
If your company performs any of the following actions listed, your business likely is entitled for the R&D Tax Credit: