Nebraska R&D Tax Credit Case Study

The R&D tax credit is one of the most valuable credits leveraged by companies. The R&D credit yields billions of dollars in federal and state benefits to companies engaged in qualifying research. The R&D tax credit can provide a significant reduction to current and future tax liabilities and a source of cash.

Benefits

  • 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
  • Credit carried forward up to 20 years

Qualifications

More companies in Nebraska can now qualify for the R&D tax credit. Companies are able to qualify R&D activities beginning with the development of concepts and extend to the point where a product, process, formula, or other business component is ready to be commercially released. If you are engaged in any research activities, looking into a potential R&D tax credit may be a great benefit. In addition, look back studies can recognize unclaimed credits for the last 3 or 4 open tax years.

Case Study

An agricultural firm in Omaha, Nebraska qualified for both the federal and state credit. The Company limited the scope of the study to include only the current year.  The Company qualified for the federal R&D Tax Credit of $96,250 and an additional $14,438 of state R&D Tax Credit in Nebraska .

  
FEDERAL
 
NEBRASKA
Year
Total QREs
Credit
Total QREs
Credit
2014
$1,100,000
$96,250
$1,100,000
$14,438
2013
850,000
NA
850,000
NA
2012
800,000
NA
800,000
NA
2011
825,000
NA
825,000
NA
     
Total 3,575,000$96,250 $3,575,000$14,438