Could You Benefit from a R&D Tax Credit Analysis?

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:

1. Do you have technical-type employees developing software or creating/improving upon products or processes in the United States?
   
2. 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?
3. Do you pay income taxes or were incorporated within the past five years?
4. Has your business pivoted development based on the recent pandemic as it is possible those activities could be R&D qualifiable?