Research & Development Tax Credit
The R&D Tax Credit, first enacted in 1981, has been one of the most valuable credits leveraged by companies. The Research & Development credit program is a federal and state tax incentive designed to promote innovation in the United States. Every year, the R&D credit yields billions of dollars in federal and state benefits to companies engaged in qualifying research. Thousands of companies take advantage of the credit across several industries for funds invested in research and development activities. Our experts allow qualifying companies to obtain maximum benefits by lowering tax obligations and increasing overall earnings.
What are the Potential Benefits of the R&D Tax Credit?
There are several benefits to realizing the R&D tax credit. These benefits can include the following:
- Receive up to 12-16 cents of federal and state R&D tax credits for every qualified dollar
- Create a dollar-for-dollar reduction in your federal and state income tax liability
- Increase earnings-per-share
- Reduce your effective tax rate
- Improve cash flow
- Carry forward the credit up to 20 years
- Perform look back studies to recognize unclaimed credits for open tax years (generally 3 or 4 years)
- Utilize the federal R&D tax credit against payroll tax (applicable to certain startup companies)
R&D Tax Credit – Audit Defense
Did you claim the Research & Development (R&D) Tax Credit and are now under audit? Regardless of how you got here, we can help. With decades of research credit audit experience, we fully understand IRS audit techniques and procedures. Our firm can guide you through the audit process in the least amount of time while sustaining the maximum credit possible.