Research & Development Tax Credits
In today’s highly competitive landscape companies must be continually investing in product/process development or they are left behind by their competitors that stay on the cutting edge of innovation. Taking advantage of this dollar for dollar tax credit against your Federal and/or state income taxes is one way to recoup those costs. Unfortunately many companies fail to take advantage of this benefit and close to 45% of the available credits go unclaimed each year. In addition, due to its highly complex nature even companies that are claiming the credit could be leaving valuable dollars behind by not including all qualifying costs.
Your firm may be eligible to claim R&D tax credit if engaged in any of the below:
- Develops new or improved products, processes, methods or formulas
- Develops prototypes or models
- Designs and develops tools, molds or dies
- Develops and applies for patents
- Develops new technologies
- Conducts testing and trials of new concepts and technologies
- Develops and/or tests new materials
- Purchased new equipment and must make modifications in order to reach design speed or design capacity
- Develops or improves production or manufacturing processes
- Develops or modifies production control software
- Automates internal processes
- Modifies products or processes to meet your customer’s specification
- Develops algorithms for software
