Are you a business owner that is unhappy with your recent tax bill? If you have not explored it yet, the Research and Development (R&D) tax credit can provide significant benefits to your business’ bottom line. Chances are you could be missing out on a dollar-for-dollar reduction in your federal and state income tax liability.

Whether you’ve already filed your return or extended, the R&D credit is a powerful tool to help lower effective tax rates. Even startups or small businesses that have no income tax liability can make use of the credit by applying up to $250,000 in federal R&D tax credits towards their payroll tax liability.

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 15 cents of credit for every qualified dollar spent on R&D
  • 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
  • Unused credits can be 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)

Taxpayers should act now to maximize the tax benefits for R&D activities. Don’t let valuable credits go unclaimed.

Need More Information?

There are several resources on our website to help you learn more about the R&D tax credit.

Check out our:

  1. Free R&D Webinars
  2. Free calculators to estimate R&D tax credit benefits
  3.     a. R&D Benefit Estimate Calculator
        b. R&D Payroll Tax Credit Calculator

  4. R&D Case study
  5. Recent Tax Insights for the latest R&D tax credit related news
  6. Videos

Have Questions?

If you are uncertain as to whether you qualify for the R&D tax credit, we recommend working with a professional. Our team of highly trained engineers and specialists are well-versed in this area and can help you maximize your R&D tax credit.

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