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The Smoother Road to R&D Tax Credits

What is the Research and Development (R&D) Tax Credit and is my business eligible?

Are you investing in Research and Development (R&D) for your business? If so, you might be qualified to receive federal R&D tax credit and, in certain cases, even state R&D tax credits. Many companies tend to overlook these opportunities that can effectively reduce their tax liability by assuming either that the credits don't apply to them or that claiming them isn't worth the effort. However, it's important to note that both federal and state R&D tax credits apply to any company, regardless of industry, that is developing new or improved products, processes, software, techniques, formulas or inventions.

If you’d like more information about the R&D tax credit program and to see if you’re truly eligible, check out this Eligibility Guide, which will help walk you through answers to questions business owners like you have about this often-overlooked business incentive, including:

  • Which industries are most likely to be eligible for the federal R&D tax credit
  • Which business activities qualify for the tax credit
  • Which business expenses qualify for the tax credit

The information herein must not be copied, transmitted, or distributed in any form or by any means without the express written permission of ADP. The information and materials provided herein is for informational purposes only and not for the purpose of providing accounting, legal, or tax advice. The information and services ADP provides should not be deemed a substitute for the advice of any such professional. Such information is by nature subject to revision and may not be the most current information available. ADP, ADP SmartCompliance and the ADP logo are trademarks of ADP, Inc. All other marks are the property of their respective owners. Copyright © 2023 ADP, Inc. All rights reserved.

ADP Editorial Team

ADP Editorial Team The ADP editorial team is comprised of human resource professionals with extensive experience solving complex HR challenges for businesses of all sizes.

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