Great news from the IRS!!!
The R&D tax credit has been doubled from $250,000 to $500,000!
This tax credit can provide businesses with a reliable opportunity to reduce their income tax liabilities. If you need additional cash to hire employees, expand your business, or conduct research and development, this credit can help.
Advantages of the R & D Credit:
- For each eligible dollar, receive up to 12–16 cents in federal and state R&D tax credits.
- Reduce your federal and state income tax obligations dollar for dollar
- Increase earnings per share
- Lower your effective tax rate
- Boost cash flow
- Carry forward the credit for up to 20 years
- Recognize unclaimed credits for prior tax years (generally 3 or 4 years)
- Payroll taxes can be offset by using the federal R&D tax credit (applicable to certain startup companies)
You are qualified if your business invests time and money to produce new or inventive items, upgrade existing products, and develop procedures, patents, prototypes, or software.
Remember, you do not have to be wearing a white coat to qualify for the research and development credit; for instance, = if you are improving a process, the industry does not matter.
Want to reduce your income tax liability? Make sure to Schedule Your Free R and D Tax Assessment Today.