R&D Tax Services
Get Even More Out of Your Investments in R&D
The Research and Development (R&D) Tax Credit was created to promote U.S. innovation and reward companies for continued investment in research and development activities by providing a dollar-for-dollar reduction in federal and state income tax liability.
Credit can be claimed on qualified research activities that demonstrate:
Improvements or change beyond aesthetics
Use of testing and experimentation
Rely on the principles of science
Lead to a new or improved product or process
Understanding and claiming incentives your business has already earned can:
Offset Payroll Taxes
Improve Cash Flow
Expand Research Investment
Lower Overall Tax Rate
How to identify eligible credits.
No cost preliminary assesment.
We will help determine what credits your business may qualify for obased on IRS guidelines, as well as the potential savings they can relaize for your operations.
We thoroughly review your R&D Operations
Our analysts determine what activities meet the federal government's test for qualified innovation activities and help you claim the credits you've earned.
You receive a full report with all necessary documentation.
We'll help you make sure all credits are in compliance with program regulations and completely and consistently documented year over year.
STILL NOT SURE?
Frequently Asked Questions
What are R&D tax credits?
R&D tax credits are dollar-for-dollar reductions in tax liability for companies that conduct qualifying research activities. They’re designed to incentivize innovation and technological advancement.
What activities qualify for R&D tax credits??
Qualifying activities must meet a four-part test:
-Be technological in natureI
-Involve the elimination of uncertainty
-nvolve a process of experimentation
-Have a qualified purpose (to create new or improved business components)
How far back can I claim R&D tax credits?
You can typically claim R&D tax credits for the current tax year plus the previous three tax years.
How is the R&D tax credit calculated ?
The credit is generally calculated as a percentage of qualified research expenses over a base amount, which is determined by your company’s historical research activities.
What industries typically qualify for RD tax credits?
While many industries can qualify, common ones include manufacturing, software development, engineering, aerospace, pharmaceuticals, food science, and agriculture.
What expenses can be included in RD tax credit calculations?
Qualified research expenses typically include:
-Wages for employees conducting research
-Supplies used in the research process
-Contract research expenses (65% of payments to contractors)
-Rental or lease costs of computers used in research activities
Can startups benefit from R&D tax credits?
Yes, qualifying startups can use the credit to offset up to $250,000 in payroll taxes annually for up to five years.
What documentation is needed to claim R&D tax credits?
You should maintain contemporaneous documentation of your research activities, including project records, payroll records, general ledgers, and any other documents that support your qualified research expenses.
