Companies in the web and software industry are not unfamiliar with the research and development process. In fact, it’s so commonplace for this industry that many tech businesses may not think their day-to-day activities apply for R&D tax credits simply because they aren’t groundbreaking innovations.
What many of these companies don’t know, however, is that many of these projects do apply and web, as well as software developments, do not need to be revolutionary advancements in order to qualify. This causes businesses to bypass on potential cash flow they could be receiving.
How Can You Find Out If Your Company Qualifies?
Finding out if your company can qualify for these R&D tax credits is actually a straightforward process. In order to receive these benefits, your business simply needs to meet one of these four requirements:
- The project or activity must improve the quality, function, or reliability of a process or product
- The project or activity must remove any uncertainty or ambiguity of a process or product
- The project or activity must involve a systematic process
- The project or activity must be technological in nature and rely on physical, biological or computer sciences or engineering.
If your company has been involved in any of these processes, you are likely eligible for these dollar-for-dollar credits.
What Type of Activities Would Qualify?
Examples of these projects or activities vary, but here are a few common activities that apply to web and software development companies the most:
- Programming software to make websites mobile-friendly
- Moving services online making these services more accessible to people
- Rewriting a CMS
- Backend technology
- Programming software source code
- Coding and application development
- Merging and integration of legacy systems with new platforms or releases
Some examples of the activities that may not qualify are features such as improving the user interface of a site or software.
Want Help Claiming These Tax Credits?
Do you think your company may apply for research and development tax credits and is missing out on potential savings? Our tax professionals at National Tax Group can work with you to determine if your activities meet the necessary criteria and we’ll handle the process from start to finish. Give us a call at 561.257.3436 to set up a free assessment today.
