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.
The credit can range between 6%-20% of eligible expenses. Amounts paid for salaries, contract research, supplies and computer leasing could all qualify for the credit. This is the ultimate question and, frankly, the hardest to answer without additional information.
To obtain a high-level estimate, contact us.
Yes!!! You can claim the credit on the federal level by filing amended returns for the past three years (or more if you posted a loss during that time). On a state level, you might be permitted to go back even further.
To determine how far back you can claim, contact us.
Sure, you are permitted to apply without assistance. However, most companies interested in claiming the R&D tax credit work with a firm solely dedicated to the tax credit process.
Recoupe Tax will handle all the hard work so you can focus on what’s most important- growing your business!
Missed credit opportunities, internal staff time, and the cost of a denied claim can all diminish the value of an in-house approach.
Documenting qualified expenses and producing an R&D study to support your claim can be a complex and time consuming process. Sound documentation is critical in order to maximize the credit as well as to limit your potential liability. The R&D study needs to be able to stand up to IRS scrutiny. In addition, the rules surrounding the tax credit frequently change (especially on the state level).
To learn more about how Recoupe Tax can assist, contact us.
The Recoupe team makes the process easier by taking a tailored approach to produce the best possible result. Recoupe helps companies determine the size of the credit, application of the credit, and constructs reliable and thorough supporting documentation for the claim to provide you with peace of mind.
Learn more about the Recoupe Process.
Low. While the risk of an audit is always present (especially when amending returns), remember: this is a credit the government WANTS you to take advantage of. The larger the amount the government spends on R&D tax credits, the better it is for the overall economy.
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If you are located in one of the 36 states that offer a state-level credit, not only can you, you SHOULD apply!
To start the process, contact us.