The U.S. Research and Development (R&D) Tax Credit was created as an incentive for businesses to take risks and undergo research activities to develop or improve its products, processes, or software.
Many companies have failed to take advantage of this lucrative tax credit in the past simply because they weren’t aware that they qualified. Due to a 2015 provision, more companies than ever are able to benefit from the R&D tax credit for research activities they’re already doing.
Despite the previous notion that R&D tax credits are only applicable to companies in the high-tech, biotech, and pharmaceutical industries, the credit is available to any business that performs qualifying research activities.
Although a wide variety of businesses qualify, less than 1/3 of companies utilize the tax credit, and those who do, often do not reap the maximum amount of credits that they’re entitled to.
National Tax Group assists companies of all sizes and industries obtain R&D credits by providing solid documentation that will withstand any level of IRS and state authority scrutiny.
In order to benefit from R&D, all research activities performed by qualifying companies must be thoroughly documented. Our team of tax-saving experts will create and provide the needed documentation.
Learn about qualifying companies that are eligible to obtain R&D tax credits:
Our Step-By-Step Process
- Perform an assessment in order to thoroughly understand how your company develops its products, processes, or software
- Prepare detailed written claims that will also benefit future claims
- Perform a feasibility analysis to calculate the actual cost of research and development
- Provide assistance with tax form and return preparation
- Document the eligible costs and activities
- Assist & manage exams and appeals
- Calculation review
- Cost review
- Future planning
- Examinations appeal and support
R&D tax credit Four-Part Test
Eligibility for the R&D tax credit depends heavily on research activities passing the 4-Part Test, created by the IRS. The 4-Part test examines the nature, process, purpose, and uncertainty of the research activities being performed.
Reap the benefits of Research and Development
Any company performing unique research activities may qualify for this lucrative tax credit. Contact us to receive a free assessment, and learn if you qualify to obtain R&D tax credits.