New Hampshire 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 New Hampshire 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

A company in Manchester designs and manufactures components for the electronics industry. The company claims R&D credits each year for the development activities of its engineers. This project involved a multi-year study covering the tax years 2012 – 2014.    The Company qualified for the federal R&D Tax Credits of $271,832 and an additional $50,000 in New Hampshire state R&D Tax Credits.

  
FEDERAL
 
NEW HAMPSHIRE
Year
Total QREs
Credit
Total QREs
Credit
2014
$1,200,000
$127,166
$1,000,000
$50,000
2013
850,000
92,166
NA
NA
2012
500,000
52,500
NA
NA
      
Total$1,200,000$271,832$1,000,000$50,000