The web and software development industry has been experiencing a dramatic increase in demand as more companies are realizing that the market is shifting to online resources and services. Although the pandemic was one of the catalysts behind this shift, companies are quickly realizing that online services are becoming standard integrations they need to provide in order to keep up with the market’s trend toward technology. In order to provide these services, businesses have relied on web development companies to write new code and create development strategies, functions which qualify them for research and development tax credits.
According to a PNC Financial Services Group survey taken in 2020 which pulled statistics from small businesses in Pennsylvania, 79% of business owners had to make these online changes to adapt in response to the pandemic. The survey also mentioned that 33% of businesses also implemented at-home work policies which required a lot of companies to move their in-office procedures online.
With a backlog of work, need to add staff, and the need for new methodologies to manage work from home, web and software firms are performing many activities that qualify for the lucrative R&D tax credits. These tax credits offset any of the cost it took to develop aspects of these online websites, systems, applications or other forms of technology.
If your company has done any activities that improve the quality, function, or reliability of a process or product, remove any uncertainty or ambiguity of a process or product, involves a systematic process, or is technological in nature and relies on physical, biological or computer sciences or engineering, you will be able to apply for dollar-for-dollar tax credits for your work.
At National Tax Group, we have a team of experienced tax experts on hand to look over all documentation for old and new projects and can help determine what activities will qualify you for these benefits. Give us a call at (561) 257-3436 for your free assessment today.