South Carolina businesses could claim up to 5% of qualified research expenditures (QREs) for conducting research and development (R&D).
A research and development (R&D) tax credit program rewards businesses for investing in R&D. While there is a federal R&D tax credit, you can look closer to home for such a benefit. The Maryland R&D tax credit, California tax credit, and other state programs all encourage local businesses to invest in R&D. Thankfully, residents of the Palmetto State can take advantage of the South Carolina R&D tax credit program.
Keep reading to discover more about the benefits of this program and how you can secure an R&D tax credit for your business.
Is There an R&D Tax Credit Program in South Carolina?
According to the South Carolina Department of Revenue, qualifying companies can take advantage of the state’s R&D tax credit program. With this program, you could receive as much as 5% of your QRE in the form of a credit. The credit calculation is based solely on R&D expenditures incurred within South Carolina’s borders. In addition, there are other requirements that your company will need to meet to participate in this program. For example, your businesses must meet the federal R&D tax credit standard. On top of that, your tax credit can’t exceed 50% of your taxpayer liability.
If you’re not sure if your business meets federal regulations, read this free article to find out if you qualify for an R&D tax credit.
How Can SC Business Owners Apply for a State R&D Tax Credit?
The specific form you would use to apply for an R&D tax credit in SC is Form TC-18. It is in your best interest though to work with a professional. Working with an R&D tax credit expert will save you time and a lot of headaches. Even better, if you work with the same tax credit expert the next year, all of your information will be on file, so you won’t have to start from scratch.
What You Need to Know: The South Carolina R&D Tax Credit Program
Innovative South Carolina businesses can claim up to 5% of their QREs on a tax credit application. You must meet federal R&D tax credit regulations and your R&D must take place within South Carolina to qualify. Working with a tax credit expert is the best way to apply for both a state and federal R&D tax credit.
Don’t wait to find out how much your credit could be. Contact us at Bowers R&D today.