R&D Tax Credits

A Research & Development Tax Credit (R&D) is a federal or state sponsored tax incentive that rewards companies for conducting R&D in the United States. Billions of dollars of Research & Development Tax Credits are available to businesses on both the federal and state level for work they have already done. Companies can receive 7-10% of their qualified research expenditures back in the form of a tax credit.

How much is an R&D Tax Credit typically worth?
For most companies, the credit is worth 7-10% of qualified research expenses on the federal level. Your state may also provide an additional tax credit which increases your overall benefit.

Which expenses qualify towards the R&D Tax Credit calculation?
US based wages, third party contractors and supplies that were incurred in the development process are eligible for inclusion in the calculation to determine a company’s R&D benefit.

What types of activities qualify for the R&D Tax Credit?
If your business is spending money to create a new product or process or improve upon an existing product or process, then you will likely qualify for an R&D Tax Credit.

Our R&D Tax Credit Study Process