Is my business eligible for tax credits?
Did you know… that the federal R&D tax credit has been a part of the tax code since 1981? These incentives are designed to reward businesses over a wide range of industries for making improvements to their products, processes, or techniques. The credit is designed to encourage large as well as small companies to invest in research & development activities including but not limited to design, development, engineering, experimentation, trial and error, process improvement, software development, quality assurance and more. This wage based credit is intended to stimulate R&D activities among businesses just like yours.
The federal credit (and the 43 state versions of the credit) have been put in place over the years to reward companies that are thinking bigger and better about their products or services. These valuable tax credits allow for additional R&D investment. Currently, the R&D tax credit and other related tax breaks save U.S. businesses more than $12 billion a year, as noted in the Washington Post.
Certainly an impressive figure—and one that would be even larger if all eligible businesses actually applied for the credit. The R&D credit is one of the most overlooked opportunities afforded to large & small businesses. Unfortunately, the vast majority of eligible small companies are unaware of these benefits or how they may qualify.
For example, when a business makes any changes to the design or development process to make it more affordable, greener, or more efficient, the business could be earning tax credits. This tax credit can be applied to both new product development as well as the production side of manufacturing, software development, fabrication, machine shops, agriculture, architecture, biotechnology, as well as a broad range of other industries. These dollar for dollar credits may have a huge impact on your bottom line.