Regardless of industry, size, or revenue, any company can qualify for R&D tax credits. Qualification isn’t based on industry or type of business but rather on the activities that a company performs.
A simple, four-part test can help determine whether the activities conducted qualifies your business for the R&D tax credit:.
- Qualified purpose. The purpose of the activity must be to create a new or improved product or process, resulting in increased functionality, reliability, performance, or quality.
- Eliminate uncertainty. You must have carried on the activities in order to eliminate uncertainty about the improvement or development of a product or process. In other words, the changes can’t just be for aesthetic purposes.
- Process of experimentation. The process you undertake must evaluate alternative solutions or approaches performed through trial and error, testing, modeling, or simulation.
- Technological in nature. The research must rely on the hard sciences, such as computer science, engineering, physics, chemistry, or biology.
To get qualified, contact us.