The Research & Development Tax Credit is broader than many people think. Taxpayers do not need to be engaged primarily in R&D to qualify, nor do they need to be in a positive tax position (recent changes allow for “start-up” type businesses to monetize the R&D Tax Credit via a payroll tax offset).
You can benefit from the R&D Tax Credit if you answer “yes” to any of the following four questions:
- Do you have technical-type employees developing software or creating/improving upon products or processes in the United States?
- Do you incur U.S.-based contractor payments, supplies, or cloud computing expenses (AWS, Google Cloud, etc.) for developing software or creating products in the United States?
- Do you pay income taxes or were incorporated within the past five years?
- Has your business pivoted development based on the recent pandemic as it is possible those activities could be R&D qualifiable?
If you answered yes to any of the above, it is possible that you can benefit from a Research & Development Tax Credit Analysis, performed by our team of experts at Withum. Contact us to schedule your free consultation.
R&D Tax Credit Services