What if you could save hundreds of thousands of dollars annually in state and federal taxes—all thanks to work you’re already doing? Through research and development tax incentives, you can.
R&D Tax Credits
Many companies are unaware that their day-to-day operations could qualify for a dollar-for-dollar reduction of their income tax liability. Indeed, the R&D tax credit regularly provides a wide range of businesses with a source of extra cash—up to 10 percent of annual R&D costs for federal purposes and much more when state credits are factored in.
If your company attempts to create products that are lighter, faster, and less expensive or more durable, reliable, or precise, the R&D tax credit adds up to money you can reinvest in your business rather than pay out to the IRS or state governments. R&D credit eligibility is also much broader than many companies realize, applying to not only the development of products, but also activities and operations, such as new manufacturing processes, environmental improvements, software development, and quality enhancements.
Learn more about R&D tax credits.
Companies in many different industries can qualify for the R&D tax credit for activities they perform. These include: