R&D Tax Credit and Incentives

R&D Tax Credit Analysis

Can you or your clients claim the R&D Credit?

 


    
 

Research and Development Tax Credits

The R&D Tax Credit, first enacted in 1981, has been one of the most valuable credits leveraged by companies. 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.

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:

  • Up to 13.5 cents of R&D tax credit for every qualified dollar
  • Dollar-for-dollar reduction in your federal and state income tax liability
  • Increased in earnings-per-share
  • Reduction of your effective tax rate
  • Improved cash flow
  • Credit carried forward up to 20 years
  • Recent regulatory developments make claiming the R&D tax credit for companies much more feasible
  • Look back studies can recognize unclaimed credits for open tax years
    (generally 3 or 4 years)