Research and Development Tax Credit – Benefits
- Generally, a Federal tax credit of 13% of Qualified Research Expenses over a base amount.
- Can take the tax credit for all open years – generally, the last three years plus the current year.
- Tax credits not refunded immediately can be carried forward for 20 years.
- Recent tax regulations are taxpayer friendly and bring additional benefits.
- State tax credits may also be available.
A Company Involved in the Following Activities May Qualify For the R&D Tax Credit
- Manufacture products
- Develop new, improved, or more reliable products/processes/formulas
- Develop prototypes or models (including computer generated models)
- Design tools, jigs, molds, and dies
- Develop or apply for patents
- Perform certification testing
- Conduct testing of new concepts and technology
- Development of new technology
- Attempt the use of new materials
- Add new equipment
- Perform environmental testing
- Develop, implement or upgrade systems and/or software
- Develop production control software
- Improve or build new manufacturing facilities
- Automate/streamline internal processes
- Expend resources on outside consultants/contractors to do any of the above stated activities
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