Startups & large manufacturing companies: The R&D tax credit is to encourage your research activities.
Startups or large manufacturing companies may qualify for the research and development (R&D) tax credit.
However, many companies are unsure whether they qualify and do not benefit from the R&D tax credit due to a lack of clear guidance. The team at Aimlon CPA P.C. will help you gain clarity on the purposes of the R&D tax credit. Specifically, we will assist with:
- Identifying which activities qualify as research;
- Determining which expenditures qualify for credit;
- Applying for the credit.
The R&D tax credit is the Federal Government’s tax break to foster innovation and technological advancement. Your company doesn’t have to set up separate research department to qualify for the R&D tax credit. Likewise, even if the credit was created to encourage research and experimentation based on the hard sciences, your company is not required to employ only engineers and scientists to be a good candidate for the R&D tax credit. Congress designed the credit to reward increases in research activities and expenditures.