Software development companies can take advantage of the Research & Development Tax Credit in ways that extend beyond just traditional programming departments. The software being developed also does not have to be groundbreaking in the industry for the efforts to qualify for the credit. Software development efforts in almost ANY industry and application have a very good chance of qualifying.
The Research & Development tax credit is one of the most significant domestic tax credits remaining under current tax law – a substantial tool maximizing a company’s cash flow and bottom line. Despite the fact that the R&D credit has been available since 1981, less than a third of eligible companies recognize that they qualify for the credit. Every company improves products and processes to remain competitive, the government rewards them through this powerful tax benefit.
Activities that qualify include:
- Concept Development/Design
- Requirement Gathering / Defining
- Design Development of Structural Software Architecture
- QA Testing during Project Development (Integration, Functional, Regression)
- Engineering / Software Development
- Management of Development
- Coding / Implementation
Job Titles of Individuals typically performing qualified activities:
- Software Engineer / Developer / Architect
- Systems Analyst
- Network / Systems Administrator
- Web Developer / Analyst
- Project Manager
- QA Analyst / Tester
- Chief Technology Officer (CTO)
Many computer science companies are missing out on these valuable tax credits! The credit is designed to reimburse companies who develop new products or inventions and offers a significant percentage back to the company for Qualified Research Activities and Qualified Research Expenses. You do not need to be a large company to qualify for the credit. ETS has helped companies of all sizes across the United States to identify these expenditures and receive the tax benefits they have been missing.
If your company performs any of these activities relating to the Research Tax Credit, please contact one of our industry leaders for a free consultation at (561) 253-6640 or email: email@example.com.