The research and development tax credit is one of the most valuable credits leveraged by innovators and entrepreneurs since its inception in 1981. While the credit has been around for almost 40 years, renewed focus on research and development has created opportunities for even more businesses to take advantage. Curious to know more? Here are 8 of the many benefits to be realized from utilizing this lucrative credit.

  1. Receive up to 12-16 cents of federal and state R&D tax credits for every qualified dollar
  2. Create a dollar-for-dollar reduction in your federal and state income tax liability
  3. Increase earnings-per-share
  4. Reduce your effective tax rate
  5. Improve cash flow
  6. Carry forward the credit up to 20 years
  7. Perform look back studies to recognize unclaimed credits for open tax years (generally 3 or 4 years)
  8. Utilize the federal R&D tax credit against payroll tax (applicable to certain startup companies)

Various challenges may make it difficult to recoup investments made to discover, develop, and deliver advancements. KBKG’s nationwide team of experts can help companies maximize lucrative tax benefits to help offset costs and support continued research and development.

Learn more about the qualifying activities for the R&D tax credit and/or contact our R&D specialists to see if you qualify.

Author: Jonathan Tucker

About the Author

Jonathan Tucker – Director
Jonathan Tucker is a Director for KBKG’s R&D Tax Credit Consulting practice. Based in Atlanta, GA, Jon has over fourteen years of experience providing federal business tax advisory services to clients in various industries including technology, manufacturing (including heavy, light, and paper and pulp), transportation, healthcare, retail and consumer products, hospitality, media and entertainment, financial, and other professional services industries. » Full Bio