Research and Development
Tax Credits

Getting rewarded for innovation sounds good when the reward is calculated correctly.
A glowing test tube being held by a rubber-gloved hand with chemical symbols and images displayed in the foreground.

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

Research and Experimental

Easing The Pain of Research & Experimental (R&E) Expenditure Capitalization

The new Section 174 rules require taxpayers to capitalize and amortize R&E costs incurred in taxable years beginning on or…
Research and development changes

What businesses need to know about the recent Research and Development changes

Written by: Leah Belanger, CPA, MSA The world of tax law is constantly shifting, creating challenges and opportunities for businesses.…
R&D Tax Credit Claims

Do You Know How to Navigate the New IRS Requirements for R&D Tax Credit Claims?

Written by: Jonathan Yorks, CPA While the new research and development tax credit requirements went into effect on January 10,…

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