Research and Development
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.
Ask the Experts
Articles of Interest
What businesses need to know about the recent Research and Development changes
Do You Know How to Navigate the New IRS Requirements for R&D Tax Credit Claims?
Understanding How the R&D Tax Credit Can Offset Payroll Taxes