Is your organization working to improve existing products, processes, or software? Or are you developing new ones? The research and development (R&D) tax credit has the potential to benefit your organization by providing valuable tax savings.
The Research and Development (R&D) Tax Credit remains one of the best opportunities for businesses to substantially reduce their tax liability. For what amounts to daily activities, companies from a wide range of industries can qualify for federal and state tax savings to allow companies to hire new employees, invest in new products and service lines, and grow their operations.
The R&D Tax Credit is for businesses of all sizes, not just major corporations with research labs – and many companies are eligible, with an expansive list of activities qualifying for the credit. The credit is calculated based on the wages of the employees that are performing the qualifying work, making it the most valuable tax incentive available to businesses.
If your company does any of the following, your business likely qualifies for the R&D Tax Credit:
- Develops or designs new products or processes
- Enhances existing products or processes
- Develops or improves upon existing prototypes and software
Various challenges may make it difficult to recoup investments made to discover, develop, and deliver advancements. Our professionals can help companies maximize this lucrative tax benefit to help offset costs and support continued research and development. Give us a call today.