Research and Development
Tax Credits

Getting rewarded for innovation sounds good when the reward is calculated correctly.
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Research and Development Tax Credits

Getting rewarded for innovation sounds good when the reward is calculated correctly.

You may have developed a new process or approach that is innovative in your industry. The costs associated with that research and development could provide a dollar for dollar reduction in your company’s annual tax liability.

The tricky part is that the IRS has a four-part test for determining eligibility for the federal R&D Tax Credit. Taxpayers who pass the test could reduce their tax liability by thousands of dollars in a given year. That means more cash flow and flexibility to pursue your business goals.

It is important to carefully document any related research and development expenses through the year, as that documentation will help to calculate the total credit available. This includes equipment purchases, but also payroll costs associated with the research and development.

We keep up with our clients’ innovations and anticipate opportunities for R&D tax credits, then assist them through the process.

- Rebecca Warren, CPA, Shareholder

Always on the lookout for new credits and incentives in manufacturing, biotechnology or other industries, Walter Shuffain can quarterback your exploration of these opportunities to make sure they are right for you. At the federal, state or local level, you should know how your business can benefit from its contributions to society, whether that is creating new jobs or designing a new medical device. Let us help you explore the opportunities.

Articles of Interest

An image compilation of a computer, magnifying glass, gears, and clouds.

Understanding How the R&D Tax Credit Can Offset Payroll Taxes

Start-ups and small businesses customarily incur expenditures that may qualify for Research & Development (R&D) tax credits, but generally, these…