Reward Innovation in Business
The Research and Development Tax Credit provides significant tax credits for businesses across the United States that undergo research activities to improve or develop their products, processes, or software.
The R&D Tax Credit was introduced through the Economic Recovery Act of 1981 offering reimbursement for business activities and resources that were utilized during the research. This is eligible through both State and Federal R&D Tax Credits.
Tax Credits for Industries of all types
Money earned back in the form of credits can be used to offset the costs spent performing Qualified Research Activities (QRAs). The R&D tax credit promotes innovation within businesses and encourages them to take risks, be creative, and become leaders in their industry.
R&D tax credits go beyond high-tech, biotech, and pharmaceutical industries. In fact, the research and development credit is available to businesses across a wide span of industries. Furthermore, businesses are no longer required to strictly develop a product or process that is unique to their industry; it only needs to be unique to them.
Businesses in all 50 states can receive dollar-for-dollar federal tax credits from R&D activities.
All U.S. Businesses are Eligible
Businesses across the United States are able to take advantage of the R&D Tax Credit. Each state allows businesses performing qualifying research activities to take advantage of the credit on a federal level, which provides a significant tax reduction to current and future tax liabilities.
Some states also allow the R&D tax credits to be taken advantage of on a state level. State-level credits provide similar benefits to federal tax credits, with additional perks.
In order to benefit from R&D tax credits, all research activities performed by qualifying companies must be thoroughly documented.
What Qualifying Activities are You Already Doing?
If you are not sure if the activities you want to claim to qualify your business for the R&D tax credit, National Tax Group will be able to give you a quick and free assessment to make it easy on you. A few examples of activities that qualify are:
- Designing new plans or layouts for buildings
- Creating new or improved products or formulations
- Enhancing the functionality of existing products or formulas
- Creating new or improved processes within production or execution
- Assisting customers with troubleshooting technical issues
- Creating new or enhanced software to be used or sold on the market
- Applying for patents and prototype development costs
Let Us Do the Hard Work
With over 20 years of experience helping clients through tax deductions, National Tax Group has fine-tuned a proven process for our clients. Partnering with National Tax Group means that we will:
- Perform an assessment in order to thoroughly understand how your company develops its products, processes, or software
- Prepare detailed written claims that will also benefit future claims
- Perform a feasibility analysis to calculate the actual cost of research and development
- Provide assistance with all tax forms and return preparation
- Document the eligible expenses and activities
- Assist & manage exams and appeals
- Calculation review
- Cost review
- Future planning
- Examinations appeal and support