The Research & Development (R&D) Tax Credit
One of the best opportunities for companies to reduce their tax liability and put money back into their businesses.
Companies ranging in both size and revenue are able to take advantage of the R&D Tax Credit.
It is one of the most powerful tax incentives, providing benefit at both the federal and state level.
When claiming the credit in a study, incentAdvise must
identify and substantiate a company's
Qualified Research Activities (QRAs).
Qualified research is an activity or project undertaken by a taxpayer that must meet four IRS requirements:
You must create a new product, process technique, formula, invention, patent or software, or improve an existing one.
You must improve performance, functionality, quality, reliability, or cost.
Technological in nature
The process of experimentation must rely on the hard sciences, such as engineering, physics, chemistry, biology, or computer science.
Elimination of uncertainty
You must demonstrate that you have attempted to eliminate uncertainty about the development of improvement of a product or process.
Process of experimentation
You must demonstrate - through modeling, simulation, systematic trial and error, or other methods - that you've evaluated alternatives for achieving the desired result.