Research and Development Tax Credit
Many companies regard research and development (R&D) activities to be associated solely with high-tech industries or those in pharmaceutical or biotechnology areas.
However, under new regulations, a company may qualify for an R&D tax credit for numerous activities that historically have been regarded as “simply doing business.”
Efforts to make new, lighter, stronger, cheaper, more reliable products or to develop more precise, economical or versatile processes may qualify for the R&D tax credit.
Qualified expenditures may be found in such areas as:
- Engineering
- Quality assurance
- Marketing
- Purchasing
- Manufacturing
- Information technology installation
- Information technology implementation
CPAmerica member firms, in strategic alliance with specified providers, may be able to help your company find hidden and immediate sources of cash, which could mean a significant reduction to your current and future state and federal tax liabilities. In some cases, the tax credits may carry forward as long as 20 years.
Call a CPAmerica member firm in your area to discuss possible qualifying activities for the R&D tax credit.
