Research and Development (R&D) Tax Credits

What is the R&D Tax Credit?

Does your business focus on breaking barriers through innovative new projects and developments? The benefits of the research and development (R&D) tax credit can help you maximize your financial benefits and enable your innovation. Established in 1981, R&D—also known as R&E (Research and Experimentation)—tax credits aim to further technological advancement, product development, and ultimately, economic growth.

Am I Eligible?

Research, development, and experimentation are core pieces of any industry, from software development to agriculture to hospitality. This means that you do not need components such as a lab or advanced technology in your facilities to qualify for R&D credits.

Your business may qualify if you focus on the development, improvement, design, or testing of the following:

Models and prototypes
Processes, formulas, and techniques
Software and inventions
Company products
Additionally, engaging in data-driven research, including collecting, compiling, and documenting data and results, may also contribute to the R&D eligibility of your business.

Benefits of R&D

When claiming R&D tax credits, the benefits can include:.

Tax credits that provide a dollar-to-dollar reduction in the amount of taxes owed or taxes already paid
Claim credit for open tax years
Eligible to be carried forward for a period of up to 20 years
Reduce tax liability on a state and federal level
Increase your cash flow and per-share earnings

At Elite Way CPAs, it’s our goal to work with you to determine eligibility and harness the benefits of R&D so you can focus on your business and continue to pioneer the next world-changing innovations.

To get in touch with Elite Way CPAs, just call 725-238-0738 or click the ‘Request a Consultation’ button below.

Research and Development (R&D) Tax Credits​

What is the R&D Tax Credit?

Am I Eligible?

Benefits of R&D

Research and Development (R&D) Tax Credits