up to 13% OF YOUR RESEARCH DOLLARS
BACK INTO your company.
CREDIT SUMMARY
As the largest Federal incentive available for businesses the U.S. government spends an estimated $10 billion a year for companies that qualify for the R&D Tax Credit. Congress intended the credit to provide incentive for companies driving growth and economic development.
In addition to the valuable Federal credit many states have similar tax credit programs that can add up to substantial savings for your companies R&D effort improving your products and processes.
By the numbers...
$2 BILLION
Small and mid-sized companies claim approximately $2 Billion in R&D tax credits each year.
$10 BILLION
The U.S. government spends an estimated $10 Billion in R&D tax credits for companies performing qualified research each year..
1 in 20
It is estimated only 1 out of 20 businesses that are eligible to receive the R&D tax credit are actually claiming them.
39 states
Currently 39 state have similar R&D tax credit programs allowing for additional opportunities in the states companies perform R&D in.
ELIGIBLE EXPENSES
When your company conducts qualified research and experimentation, several types of expenses are used to calculate the credit amount:
WAGES
The majority of the credit typically results from taxable wages paid to employees conducting or supervising qualified research.
SUPPLIES
Materials used directly in development of new product prototypes with useful lives of less than 1 year can be qualifying expenditures.
CONTRACT RESEARCH
Sixty-five percent (65%) of contractor payments can be included if your company retains the rights and has the financial risk of the research.