What is the R&D Tax Credit?

The R&D tax credit is a dollar-for-dollar reduction of corporate or individual tax liability for simply doing what you do to serve your clients and stay ahead of the competition.

How much is the credit?

The R&D tax credit is a 20 percent credit on qualified research expenditure that exceed a base amount. State credits are typically less than the federal amount, but can still be significant.

Who qualifies?

Companies who engage in any of the following activities may qualify for the R&D tax credit:

  • Manufacture or design new products
  • Redesign existing products
  • Develop formulas or techniques
  • Design new functional packaging
  • Automate manual processes
  • Develop or improve production processes
  • Create or test prototypes
  • Test new concepts or technology
  • Design tools or molds
  • Develop or enhance software
  • Employ engineers, scientists or other technical personnel
  • Engage outside professionals to do any of the above