The chemical and plastics industry is a strong contender for the Research and Development (R&D) Tax Credit. However, many companies are unacquainted with the scope of the benefit and don’t take full advantage of it. In recent years, the IRS has broadened the spectrum as to what qualifies as research…
The aerospace and aviation industries are currently driving America’s economic growth by providing 15% of the US Gross Domestic Product and offering approximately 11 million domestic jobs. Consequently, we depend on this highly technical workforce to keep expanding America’s innovation. Appropriately, aviation and aerospace companies are highly rewarded by the…
Engineering firms are strong candidates for the Research and Development Tax Credit. Most of the activities they perform create new or improve existing business components (products, processes, techniques, inventions, formulas or software), the business components are technological in nature, they eliminate some kind of uncertainty, and they go through a…
In order to thrive in the medical device manufacturing field, companies have to constantly redesign and redevelop their products. Since medical devices are usually highly technical in nature, they almost always meet the qualifying activities required to obtain the Research and Development (R&D) Tax Credit. There are four requirements needed…
Software and technology companies perform qualified research activities (QRAs) on a daily basis, making them eligible to claim the Research and Development (R&D) Tax Credit. These companies conduct enormous amount of R&D activities, which makes them one of the strongest contenders for this valuable tax incentive. The software and technology…
It can often come as a big surprise when CPAs and businesses learn how many different industries are eligible for the Research & Development Tax Credit (R&D). These federal and state tax credits offer excellent opportunities to convert R&D expenses (developing new or improved products, processes or software) to valuable…
Startups can benefit from the Federal Research & Development Credit this year and reduce their quarterly tax liabilities with a Payroll Offset of up to $250,000 this year! We know how beneficial the Research and Development Credit (R&D Tax Credit) is when reducing taxable income for profitable companies, as well…
Several stages and activities are involved in the research and development of a product, process or service in order to create them. Some of these stages generally qualify as qualified research activities (QRAS), but others don’t meet the IRS Four-Part Test threshold. In order to obtain the Research and Development…
Contracts matter to the IRS, so it is important to take a closer look at funded research and what it means to the Research and Development Tax Credit. Research expenses are considered funded if they are compensated by grants, contracts, persons or government entities. To be eligible for the R&D…
A company is able to obtain benefits from the Research and Development Tax Credit as long as they have Qualified Research Expenses (QREs). The IRS defines QREs as the sum of “in-house research expenses” and “contract research expenses”. Those in-house research expenses include: Wages: Taxable or subject to self-employment tax…