R&E Tax Credit Services

If research and innovation are part of your culture, it is worth your while to consider the Research & Experimentation Tax Credit, and our tax professionals have helped numerous clients claim a share of the roughly $9 billion in R&E credits that are distributed annually.

Legislative changes in recent years have opened the R&E credit to companies that previously would not have qualified, and more companies are using it for process improvements that they might have shrugged off as “just part of the job.” That could mean developing a lighter or more flexible tool, designing a unique electrical system for a new building, testing new materials, applying for a patent or streamlining an internal process.

The credit covers a portion of wages for employees who directly contribute to R&E, supplies and software used in R&E activity, and contracted R&E services. Click here for more information about qualifying for the R&E credit and calculating the credit.

A business can claim the credit for all open tax years, which generally means the current year and the past three years, and it can carry the credit forward up to 20 years, which makes it valuable even to companies currently operating at a net loss. Our tax professionals remain attentive to legislative changes impacting the tax code, so you can continue to claim eligible credits and plan for future credits.

Resources:

Eligibility for the research and experimentation tax credit depends on the nature of the activity producing the expenditures, not the nature of the product or improvement being developed or the level of technological advancement the product or improvement represents. Read more

A well-researched, well-documented and well-rehearsed business continuity plan could mean the difference between surviving a major interruption or being forced to close. A business can help fund such a plan by utilizing the R&E credit. Read more

Recent legislation has made the credit accessible to contractors, architects, engineers and smaller manufacturers, and pending legislation would make the credit permanent. Read more