Creating new products can be costly, but there are tax credits for innovation in business. Research and development (R&D) tax credits are incredibly useful tools that can provide relief to companies with large tax burdens.
Our team member, Laura Berry, explains in the webinar below how these R&D tax credit programs work and how you can use these credits to your advantage.
Tax Credits for Innovation Webinar
As you learned, Federal and state R&D tax credits are wonderful tools that can provide financial support for your business. Remember that you must pass a four part test in order to qualify for this credit. You can review the test here:
- Did you company develop a new product or process or improved upon existing functionality?
- Did your company deal with some form of uncertainty in the development process (appropriateness of design, method used, etc.)?
- Did your company utilize a process of experimentation to eliminate uncertainty (modeling, prototyping, trial and error or other testing)?
- Did your company conduct experimentation which relied on engineering, biological, physical or computer science?
Answering these questions in the affirmative means that you could be eligible for an R&D tax credit. Bear in mind that claiming your credit will require you to share details about your business like salaries of pertinent employees, information on your projects and more.
Our thanks to Fred Toroni of Fred J. Toroni & Company for providing his expertise in this webinar.
What You Need to Know About Tax Credits for Innovation in Business
Federal and state R&D tax credits can be used to reduce a qualifying company’s tax burden. While business located throughout the nation can benefit from the Federal credit, you’ll need to check if your state offers such a program.
If you have questions about these incentive programs, speaking with an R&D tax credit professional can clear up any confusion you may have. Reach out to our R&D Tax Credit Team today to learn more!