Research & Development (R&D) tax credits are available for taxpayers of all sizes who develop, design, and improve their products, processes, and techniques. R&D is not just for large companies with extensive research labs. Often taxpayers are amazed that what they are doing in their day-to-day operations qualifies for the R&D tax credit. R&D covers a broad spectrum of business types including, but not limited to, manufacturers, contractors, software developers, agriculture, and many more. We evaluate what clients are already doing and help them determine if their activities qualify for the federal and state research and development tax credits.
To have a qualifying activity the taxpayer must have some uncertainty at the onset of the project. This means that you have not done this before and are not sure of the exact way to accomplish the project. Also, there must be some type of experimentation during the project. Finally, there must be some form of hard science behind the project, which could include engineering, fabricating, physics, and chemistry, to name a few.
If you are investing time, money, and company resources to develop and improve products and processes, you may already qualify for the federal R&D Tax credit. Our team will help you determine if these activities fall within the scope of the tax credit guidelines and work with you to take advantage of the credit. Call us for a no-cost evaluation to learn if you may qualify.