Nevada doesn’t have an R&D tax credit program, but businesses could receive a credit of 7-10% for QRE from the federal government.
Research and development (R&D) tax credit programs have long incentivized businesses to continue investing in R&D. Many states have mirrored the federal government and offer a localized R&D program. Unfortunately, the R&D tax credit options for Nevada businesses are limited to the federal R&D tax credit. Keep reading to learn everything you need to know about the federal R&D tax credit program.
Does Nevada Have an R&D Tax Credit Program?
Unfortunately, Nevada doesn’t currently offer an R&D tax credit program for aspirational business owners. Although, your Nevada business could qualify for an R&D tax credit from the federal government. You will need to determine if your business has:
- Developed a new product/process and/or improved upon existing functionality
- Encountered a level of uncertainty in the development process
- Put into practice a process of experimentation to eliminate uncertainty
- Conducted experimentation that relied on either engineering, biological, physical, or computer science
- Employed all or a portion of your workers within the United States
If you meet these qualifications, you will be able to move on to the next step of identifying your qualified research expenditures (QRE) and getting an estimate of your total credit.
What is QRE?
QRE are specific items that can be used to calculate your R&D credit. You may list these items as QRE:
- The salaries of your full/part-time U.S.-based employees taking part in R&D
- A percentage of any 3rd party U.S.-based contractors hired for R&D
- Disposable supplies purchased for your company’s R&D
While you will need to complete a full R&D study to find the total amount of your credit, you can use a free R&D tax credit calculator for an estimate. Typically, business owners can expect to receive a credit that reflects 7-10% of their QRE.
What You Need to Know About R&D Tax Credit Options for Nevada Businesses
Creative Nevada business owners can’t claim an R&D tax credit from their home state. They can, however, claim an R&D tax credit from the federal government if their business qualifies. If your business meets federal R&D tax credit program regulations, you could receive a credit that’s 7-10% of your QRE. Don’t wait get the credit you’ve earn. Contact us at Bowers R&D today.
