Does Your Business Qualify for Lucrative R&D Tax Credits?
By Wiss Associate
“My company’s not in the business of research and development, so how could we qualify for R&D tax credits?”
If that’s what runs through your head when you think of this particular credit, it’s understandable – especially if you don’t have any scientists or many engineers on staff. Or a dedicated research and development department.
The truth is, you could earn lucrative federal, state and local tax credits with work that you don’t even think of in conventional R&D terms. But first let’s take a look at why it’s so important to examine your options.
For starters, qualifying federal tax credits for research and development could total ten percent of what you invested in wages, supplies and outside services. You could also avoid state and local tax liability. The total could add up to thousands of dollars in unanticipated tax breaks, and that’s money you could reinvest into growing your business.
So who qualifies?
The idea is to help companies that make scientific, engineering or technological improvements to a product or to a process for creating products. Typically, you started with nothing in terms of knowledge except recognition of a need and created an invention, formula, software – something of substance (not a marketing campaign, for instance) that improved your business.
While that might include development of a new drug by a pharmaceutical concern, it could also entail new software that improves the workflow on a food processing line.
While life sciences and such recognized technology-based industries as automotive, aerospace and advanced manufacturing can certainly take advantage, you’ll also find food processors, light manufacturers, software developers and many other industries among those the tax credits benefit.
Why it matters
Companies that qualify can cut their tax bill with credits that might be applied toward the wages paid to involved employees, the supplies used for R&D (including computers and advanced equipment) and even contracted laboratories and other outside resources.
The point is, R&D tax credits are more widely available than you might think, and it’s certainly advantageous to see if your company qualifies. That’s why it’s incumbent that you reach out to us if you think your company has even a remote chance. We can evaluate your situation and improve your bottom line by helping you claim R&D tax credits you’ve earned.
Want more information? Click here for our R&D Tax Credit Brochure.
If you have any questions, reach us at email@example.com or 973.994.9400.
AccountinFirm, Innovation, Life Sciences, ProcessInnovation, ProductInnovation, RD, Research, stateandlocaltax, Tax Credits, TaxAdvantages, taxcredit, taxes, TaxServices