R&D Tax Credits

The research and development (R&D) tax credit enacted in 1981 is a benefit that most businesses tend to overlook.

Recent regulations make it easier for a wide range of companies to qualify for the credit.  R&D tax credits do not require an onsite lab nor do you need to be a hi-tech company to qualify. Companies may qualify for the R&D tax credit if they develop, evaluate, test, or improve any of the following:

  • Formulas
  • Inventions
  • Processes
  • Products
  • Software
  • Techniques

If you are in one of the following industries, you may be entitled to the R&D tax credit:

  • Government Contracting
  • Construction
  • Engineering Services
  • Architectural Firms
  • Financial Services
  • Wineries and Breweries
  • Biotechnology
  • Electronics
  • Food Sciences
  • Manufacturing
  • Medical Devices
  • Pharmaceuticals and Nutritional Supplements
  • Software Development

A company may qualify if it has invested time, money, and resources toward the advancement and improvement of products and processes. At the federal level, R&D tax credit rules allow eligible taxpayers to “look back” to all open tax years (typically three years plus the current year) for potential R&D tax credits that were never claimed.

“I have worked with Thompson Greenspon for over 20 years and have always found them to be helpful, timely and very competent.  They have proven to be a valuable asset in any accounting and tax situations.”

– Joe D.

Benefits of the R&D tax credit include, among others:

  • Dollar for dollar reduction in your tax liability
  • Increased cash flow
  • Increased earnings for share

Our specialists are all seasoned professionals who have years of experience working within your industry. Reach out to us today to schedule a consultation.

talk-to-specialist-cpa-accounting
LATEST POSTS ON TAXES
Close-Up on the New QBI Deduction’s Wage Limit
The Tax Cuts and Jobs Act (TCJA) provides a valuable new tax break to noncorporate owners of pass-through entities: a deduction for a portion of qualified business income (QBI). The...
What You Can Deduct When Volunteering
Because donations to charity of cash or property generally are tax deductible (if you itemize), it only seems logical that the donation of something even more valuable to you —...
Home Green Home: Save Tax by Saving Energy
“Going green” at home — whether it’s your principal residence or a second home — can reduce your tax bill in addition to your energy bill, all while helping the...