Activities that typically qualify
Salary & Wages
Wages for in-house engineers, scientists, and other technical personnel performing research activities can qualify. Also, the salary for leads and executives with direct supervision or support of research is often eligible for the credit as well.
Supplies are any tangible property other than land, land improvements, or assets subject to depreciation that is used or consumed during research. Supply expenses must be directly linked to qualified research activities.
Contract Research Expenses
Sixty-five percent of any money a company pays to any person (other than an employee) for qualified research can be eligible. You must have rights to the research results and bear the economic risk of research for the contract expense to qualify.
Federal Credit for Increasing Research Activities
The R&D Tax Credit was enacted to incentivize businesses to invest in developing new or improved business components, to create jobs in the U.S., and to compete globally.
Federal R&D Payroll Tax Offset
This provision allows a start-up company (a qualified small business) to claim credit against employer-paid payroll taxes up to $250,000 in qualified research expenses.
Elevate Your Business with R&D Tax Credits
Companies of all industries and sizes benefit from R&D tax incentives to spur growth and innovation.
CTI identified almost $2 million in R&D tax credits over three years. We’ve built a rapport and consistent methodology with CTI that makes for an efficient study process and credit amounts beyond our expectations.