Take A Deep Dive Into How Your Business May Qualify For Research And Development Incentives
Research and Development Incentives are offered in many jurisdictions and come in many forms of benefit (income tax, property tax and sales tax savings). These incentives are available to businesses of all sizes and industries, not just large businesses with research labs. Any business can qualify if they conduct activities such as development, process improvement and product improvement (software included).
Many eligible businesses overlook these programs simply because they are unaware they qualify or receive only a portion of their eligible benefit by failing to identify all the available programs or fully capturing the benefit for the programs they do identify.
The Federal Credit for Increasing Research Activities is an income tax credit that can provide a dollar for dollar reduction in a company’s federal tax liability. Certain start-up companies may be able to use the credit against its federal payroll tax liability. Many states allow for a state-specific R&D Tax Credit for qualified expenses related to R&D activities conducted in their state. In addition, states may offer sales and/or property tax exemptions related to the purchase of equipment used for research and development activities.
The availability of these R&D incentives provides great “look back” opportunities where a business can go back to prior years, identify and capture the benefit and then request tax refunds. R&D tax incentives save businesses more than $15 million annually. Explore these incentives to ensure your business claims their fair share.
Please refer to our Incentives by State Map to identify some specific R&D Incentives.