R&D tax incentives are a complex area, and I appreciate the confidence Eide Bailly gives us that we have clear, clean documentation to support any type of review. I value that as much as I do the savings we have generated."
As a small business, we need every legitimate tax benefit that is available. The tax savings from the R&D credits that Eide Bailly helped us receive allow us to invest in new product development while keeping our profit margins at our targeted amounts."
What types of organizations typically receive the research and development tax credit?
The R&D tax credit has no specific industry requirements when it comes to utilizing the credit. The application of the credit lies more with the types of activities a particular organization is participating in.
Industries in which we have seen the R&D tax credit make an impact include:
The Impact of the R&D Tax Credit
Find out how Eide Bailly’s specialized R&D tax incentives knowledge found $500,000 in credits for a software company.
Additional state credits may apply
No state credit available
Supplies include any tangible property used in R&D, i.e. prototype units (even if eventually sold), experimental fixtures and tooling, and samples used for field testing. Exclude equipment being depreciated.
Contractors must be performing research (i.e. design, prototyping, testing, etc.) on behalf of the taxpayer, and must be paid even if the research is unsuccessful to qualify.
Federal credits may be available up to:
This tool is for general information purposes and does not take in to account the complexities of law and factual circumstances that could affect qualification for the credit. Claiming the credit requires a thorough, in-depth analysis of specific issues.
The R&D tax credit has a lot of benefit to many organizations. But how do you know if it will benefit you? Utilize our R&D tax credit calculator to see what type of benefit you could receive.
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