The Research and Development (R&D) tax credit is a government incentive designed to encourage innovation and technological advancement among businesses. Established in 1981, the credit allows eligible businesses to offset a portion of their income tax liability with qualified R&D expenses. These expenses typically include wages for employees engaged in R&D activities, costs associated with developing new products or processes, and expenses related to research conducted outside the company.
R&D tax credit aims to stimulate economic growth by fostering innovation across various industries, from technology and pharmaceuticals to manufacturing and engineering. It serves as a financial incentive for companies to invest in research that contributes to the development of new technologies, products, or improved processes. Over the years, the R&D tax credit has been a valuable tool for businesses to remain competitive on a global scale and to promote a culture of innovation within the United States.
Benefits you’ll love
Dollar-for-dollar reduction in your federal and state income tax liability
Increased in earnings-per-share
Improved cash flow
Credit carried forward up to 20 years
R&D tax credit boosts innovation, giving companies a competitive edge
Seize the R&D tax credit to turbocharge your business growth. Transform your research investments into powerful financial incentives, propelling your company forward in the competitive landscape.
Projects/Products that may qualify:
- New Product Development: Research and development expenses incurred while creating new products or significantly enhancing existing ones.
- Process Improvement: Costs associated with developing more efficient manufacturing or operational processes.
- Software Development: Expenditures related to the creation or improvement of software, including coding, testing, and debugging.
- Prototype Development: Costs involved in designing and building prototypes for new products or processes.
- Scientific Research: Expenses for scientific inquiry aimed at resolving technological uncertainties in your industry.
- Environmental Sustainability Projects: Research focused on developing eco-friendly technologies or processes.
- Material Testing: Costs associated with experimenting and testing new materials for improved product performance.
- Automation and Robotics: Expenses related to the development and integration of automation and robotic systems.
- Biotechnological Advancements: Research costs incurred in the field of biotechnology, such as pharmaceutical research or genetic engineering.
- Data Security Enhancement: Expenditures on research to enhance cybersecurity measures and protect sensitive data from potential threats.
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