This government-sponsored program benefits Ohioans who are blazing the trail in innovation.
What is the Research & Development Tax Credit?
The R&D tax credit was established in the 1980’s as part of a list of sweeping moves to stimulate the economy. Ohio businesses in the industries can leverage R&D to gain credit back on their taxes, with the idea that they will then reinvest in new jobs and growth to support the American economy.
The Ohio R&D tax credit equals 7% of Ohio qualified R&D expenses in excess of the average tax liability of the three prior taxable years. There is no special application or approval process for this tax credit; the credit may simply be claimed on a tax return. Any unused portion of the tax credit that businesses do not use may be carried forward for as many as seven years.
Who Can Claim It?
Any business currently performing Qualified Research Activities (QRA) in the state of Ohio is qualified. All C-corporations, S-corporations, LLCs and partnerships can all claim R&D on their tax returns. However, while this process is accessible and sounds simple, it can also be quite intricate. Therefore, we recommend the process for itemizing and reporting R&D activities be done with a team of tax experts.
Request Your Free Assessment
At National Tax Group, we will not only fill out your tax forms, but we will also provide a comprehensive report of your company activities and equip you with IRS audit-proof documentation. Call our tax experts today at (561) 257-3436 to see if your startup qualifies for a lucrative R&D tax credit. Your initial assessment is always free.