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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:

STEP 1:

Qualified purpose

  • 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.

STEP 2:

Technological in nature

  • The process of experimentation must rely on the hard sciences, such as engineering, physics, chemistry, biology, or computer science.

STEP 3:

Elimination of uncertainty

  • You must demonstrate that you have attempted to eliminate uncertainty about the development of improvement of a product or process.

STEP 4:

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.

FAQs

WHAT IS R&D?

WHAT IS THE R&D TAX CREDIT?

WHAT ARE THE BENEFITS OF THE R&D TAX CREDIT?

HOW CAN NEW BUSINESSES REDUCE EMPLOYER PAYROLL TAXES?