Not only can corporate taxpayers benefit generously on a state level, but also on a federal level, thanks to this comprehensive nationwide program.
Businesses all over the United States are fearing future economic uncertainty following the continuing Coronavirus pandemic. What many company owners in Connecticut and nationwide may have overlooked is the Research and Development tax credit, a lucrative tax incentive that offers dollar-for-dollar returns on qualified activities. Now is a particularly good time for companies to reexamine their 2018 taxes and determine where they may have left some money on the table, since the IRS has extended the corporate tax deadline to July 15, 2020.
In Connecticut, businesses that invest in research and development get rewarded for their innovation and risk-taking by getting a tax reduction on both federal and state taxes. State companies of all sizes are eligible for incremental and non-incremental tax credits. To calculate the tax credit amount for Connecticut state, multiply the amount invested on research conducted in Connecticut by the appropriate percentage. A qualified tax expert can lead you through the process to claim this lucrative perk. More detailed information can be found here.
National Tax Experts Can Help You in Claiming R&D Tax Credits in Connecticut By Assisting You With:
- Compiling a comprehensive summary of your company’s research activities, including tax year, expenses and locations
- Cataloging your total research expenses
- Itemizing all methods used to calculate your research and allocated expenses
- Indexing the wages of each employee that practices qualified research for your company
- Completing the appropriate tax forms
Qualified Research Expenses (QRE) include:
- Conducting qualified research trials
- Investing in supplies for the development of new products or processes
- Practicing qualified research activities
- Directly assisting and providing oversight of qualified research activities
- Purchasing supplies that are directly related to the qualified research
The R&D credit was originally enacted in 1981, and in 2015, the Protecting Americans Against Tax Hikes (PATH) Act made it permanent. The PATH Act also broadened the nature of industries that are able to claim the credit. Manufacturers, engineers, software developers, and food and beverage distributors are just some of the professionals that can apply for the Research and Development tax credit in Connecticut.
Contact National Tax Group at (561) 257-3436 to claim your free R&D tax credit assessment. During your call, we’ll determine if your company’s research activities qualify it for the Connecticut R&D Tax Credit Program.