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
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