Research & Development (R&D)Tax Credits

Any company that designs, develops, or improves products, processes, techniques, formulas, inventions, or software may be eligible for an R&D Tax Credit.

The R&D Tax Credit was originally enacted as a Federal Tax Program in 1981 and was designed to encourage American investment in innovation. In 2004, tax regulation changes significantly expanded the credit opportunity. Today, the credit is accessible to many small and medium sized companies whose activities include design, manufacturing and process improvements.

This Incentives benefit provides an avenue to receive “tax money” back from prior years while also reducing current taxable income on a dollar-for-dollar basis.

What Type Of Business Qualifies for R&D Tax Credit?

Who and what qualifies as research and development (R&D) is much broader than most realize. Activities and costs related with developing or improving a product and/or process often qualify for R&D tax credits. Furthermore, engineering, design, testing, and programming are now included as Qualified Research Activities (QRE).

Industries that most commonly qualify are:

  • Manufacturing
  • Fabrication
  • Engineering
  • Software Developers
  • Chemical
  • Tool & Die
  • Machine Shops
  • Plastics Manufacturers
  • Pharmaceutical
  • Biotechnology
  • Food
  • Sciences/Manufacturers

The R&D Tax Credit has proven to stimulate the economy and now saves U.S. businesses more than $12 billion annually. However, LESS THAN 33% OF BUSINESSES THAT QUALIFY, CLAIM THE CREDIT!

What Are The Benefits Of An R&D Tax Credit Study?

The average R&D Tax Credit puts over twenty-five thousand dollars, for every million dollars in total company payroll, back in the business’s pocket.  This creates an immediate increase in company cash flow.

 

Employers receive a dollar for dollar credit against taxes owed or previously paid

and employers can carry the credit forward for future profitable years

 

In addition to the current year, businesses may claim for the last three years where credits were not taken.

  • Avg $25,000 per $1,000,000
  • Increased Cash Flow
  • Dollar for dollar carry forward credit
  • 3-Year Lookback

How To Get Started With R&D Tax Credits?

To get started, we’ll schedule an, over the phone consultation with one of our R&D Specialists to discuss and identify potential Qualified Research Expenditures.  This is a simple and quick process.

 

If qualifications are identified, we’ll collect an authorization to begin working on your behalf.

 

We’re so confident in what we do that no fee is charged until credits are identified and utilization is verified with your accounting representation.

Request an initial 15 minute consultation to get started.

This is a simple and quick process.

 

Or Call Us at 1-800-488-5798