R&D Tax Credits
For businesses in multiple industries looking to reduce Federal and State tax liability.
What Goes into the Virginia R&D Tax Credit as a Qualified Research Expense?
The Virginia research and development tax credit allows for businesses to claim a percentage of their qualifying research expenses. In order for an expense to qualify it must meet specific research criteria:
Products, services, processes, or software must be new or improved in some way.
The research must be technological.
Uncertainty must be eliminated as a result of the research.
Research must include experimentation processes of some nature.
The types of expenses that are applicable to claim under the credit include the following:
Wages paid to employees who are directly involved in the performance of research and development activities within the state of Virginia. This includes payments made to subcontractors involved in the performance of such activities.
Take Advantage of the R&D Tax Credit with Source Advisors
The R&D tax credit can help a wide variety of businesses offset and reduce their income tax liability, in addition to providing many other benefits. At Source Advisors, we can help assess your company’s federal R&D tax credit opportunity and also determine any state R&D tax credit availability. Most states offer R&D tax credits as well with many of them being more lucrative than the federal credit. 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 then help drive overall growth.