Determine the estimated amount of R&D tax credit you’re eligible for from the previous tax year in three easy steps:
The R&D tax credit can provide significant savings on expenses incurred for qualifying activities and qualified research expenses. It is a dollar-for-dollar credit against taxes owed or taxes paid. It was initially created to incentivize US-based research and development activity. Through the Protecting Americans from Tax Hikes (PATH) Act in 2015, the R&D tax credit was extended to startups and small business groups.
The benefits include:
Companies of any size that perform qualified activities are eligible for R&D tax credits
The following sample activities qualify for the R&D tax credits:
Yes. For 2016 and subsequent tax years, businesses can use their R&D tax credits to offset payroll tax providing they meet the following requirements:
Note: For a company wishing to use its 2017 R&D tax credits to offset its payroll tax in 2018, it could not have had any gross receipts prior to 2013.
This calculator has been developed utilizing data from a variety of studies conducted in the industries listed. This is only an approximation based on a variety of assumptions and should be treated as such. Your company may also qualify for a state benefit.
At Source Advisors, our team of experienced CPAs, attorneys, engineers, and technology experts helps companies save money and create cash flow with R&D tax credits that can help drive overall growth.