Research and Development Tax Credit
The R&D Tax Credit, first enacted in 1981, has been one of the most valuable credits leveraged by companies. Every year, the R&D credit yields billions of dollars in federal and state benefits to companies engaged in qualifying research. Thousands of companies take advantage of the credit across several industries. Some of the common industries that qualify for the R&D tax credit include, but are not limited to:
- Manufacturing & Fabrication
- Software Development
- Engineering
- Architecture
- Life Sciences & Pharmaceutical
- Machining
- Aerospace & Defense
- Food Science
- Tool & Die Casting
- Foundries
- Automobile
- Chemical & Formula
Estimate Your Benefits with our FREE Calculators
Use our calculators for an estimate of state and federal R&D tax credit benefits or to determine if you can offset payroll tax using the R&D tax credit. It's easy to use and free. If at any time you have questions, contact us. We are here to help you realize your maximum tax benefit.
The Potential Benefits of the R&D Credit
There are several benefits to realizing the R&D tax credit.
These benefits can include the following:
- Up to 13.5 cents of R&D tax credit for every qualified dollar
- Dollar-for-dollar reduction in your federal and state income tax liability
- Increased in earnings-per-share
- Reduction of your effective tax rate
- Improved cash flow
- Credit carried forward up to 20 years
- Recent regulatory developments make claiming the R&D tax credit for companies much more feasible
- Look back studies can recognize unclaimed credits for open tax years
(generally 3 or 4 years)
R&D Experts
-
Kevin ZolriasatainPrincipalBiography -
Lou Guerrero, MBTPrincipalBiography
-
Liz WallaceDirectorBiography
-
Paul McVoySenior ManagerBiography
-
Michael MaroneySenior ManagerBiography
-
Tetyana GuguchkinaManagerBiography
A free preliminary analysis can give you an idea of how the R&D Tax Credit can benefit your company
Additional Resources
» R&D Case Study
» R&D Recent News
» R&D Payroll Calculator
» R&D Benefit Calculator
Four-Part Test
Qualified research activities are defined by the four-part test outlined below
Technological in Nature
Activities must fundamentally rely on the principles of physical or biological science, engineering, or computer science.
Permitted Purpose
Activities must be performed in an attempt to improve the functionality, performance, reliability, or quality of a new or existing business component.
Eliminate Uncertainty
Activities intended to discover information that could eliminate technical uncertainty concerning the development or improvement of a product.
Experimentation
All of the activities must include a process of experimentation including testing, modeling, simulating, systematic trial and error.
KBKG Advantage
Discover why so many companies and accounting firms rely on KBKG for their tax incentive, credit and deduction planning needs.
As one of the premier service providers in the industry, we are passionate about helping business owners and accounting professionals across the country identify, claim and—when needed—defend their tax savings strategies. Our KBKG Advantage is the reason why clients turn to us time and time again for assistance. For superior teamwork, tailored service, and assurance backed by our KBKG Audit Guarantee, you can rely on KBKG. Learn more...