R&D tax credits can be ideal for startups—particularly those of a technical nature, such as in the fields of computer science or pharmaceuticals. The credits can deliver a financial windfall to qualifying taxpayers, but the unique circumstances of startups entail challenges. As a result, it’s wise to engage a seasoned tax and engineering specialty firm.
If you are an entrepreneur with a new business that is developing products to bring to market, the federal Research and Development (R&D) tax credit can benefit you. Historically, the R&D tax credit was meant to offset federal income tax liability. This restriction meant that start-ups could not benefit from R&D tax credits until they