The R&D Tax Credit: Making it Work

The R&D Tax Credit: Making it Work

Get Your Complimentary R&D Tax Credit Analysis

Our dedicated team is committed to preserving your rights to claim federal and state R&D credits. ETS will show you how to take advantage of this significant tax benefit.

Innovation is the key to remaining competitive. As a result, the federal government rewards businesses for taking risks and thinking outside the box by allowing a Research & Development (R&D) Tax Credit which can reduce federal taxes and many state taxes as well.

But all too often, innovative companies think “inside the box” when it comes to claiming this tax credit. They don’t realize qualifying doesn’t always require something new to the industry, it could simply be new to you! It is not required that the work being performed revolutionize the industry or advance the field as a whole. On the contrary, the product or process must simply be new to the taxpayer.

The R&D Tax Credit represents an unrealized source of cash for companies of any size in almost any industry including:

  • Manufacturing
  • Software development
  • Aerospace
  • Telecommunications
  • Electronics
  • Pharmaceutical
  • Chemical
  • Engineering
  • Architectural
  • Consumer Products
  • To name a few…

Many people think you they need to be a high tech manufacturer to qualify. In reality contractors, job shops, tool & die shops and plastic mold injection companies are all potentially viable candidates.

The savings can be significant. Take a biotech company with $1.2M in qualifying research expenses. Their first year benefit:

Federal Credit $96,135
State Credit (California) $90,959

Total Benefit: $187K

Claiming the R&D Tax credit can be complicated. That’s why it is important to work with qualified experts like Engineered Tax Services. Contact us for a complimentary initial benefit analysis and strategy. When it comes to the R&D tax credit, make sure you aren’t leaving money on the table.