The Research and Development (R&D) Tax Credit is a government sponsored tax credit available to help reduce both Federal and State income tax. The R&D credit is available for businesses of all sizes, not only large companies with those working in lab coats. This credit allows business to reduce their tax burden, dollar for dollar, by the amount of the credit, thereby freeing up cash flow for future investment in research activities. You may qualify for the R&D credit if you are a company that invests in the development of a new or improved product, software or other process.
- Automobile parts manufacturing
- Tool and Die making
- Aerospace parts manufacturing
- Design/Build contracting
- Structural engineering
- Medical Equipment manufacturing
- Civil and Environmental engineering
- Biomedical engineering
- Architectural design
- Computer modeling
Some examples of the activities that many qualify for the credit include, but are not limited to:
- Testing of new concepts
- Developing or testing of new products or materials
- Paying outside consultants/contractors to perform any of these activities
- Development of new or enhanced formulations
- Improving existing products
- Trial and error experimentation
- Developing or improving production or manufacturing processes
- Design and analysis of prototypes or models
- Developing, implementing or upgrading systems/software
Here are a few of the questions you should ask to determine if your clients qualify:
- Was the activity conducted within the United States?
- Was the activity undertaken for the purpose of discovering information that is technological in nature?
- Was the activity intended to develop a new or improved business component?
- Did the activity use a process of experimentation that relates to a new or improved function, performance, reliability or quality of a new or existing product or process?
Come Learn More!
Date: November 8, 2017
Time: 3:00 p.m. – 4:30 p.m.
Location: Power Inn Alliance (new office) – 7801 Folsom Blvd, Ste 102, Sacramento
Presented by: Alliance Member, MUN CPAs