What is a Research and Development Tax Credit?
A Research and Development (R&D) tax credit is a tax break that allows businesses to deduct some of the money they spend on research and development from their taxable income. The R&D tax credit was created as a way to encourage businesses to invest in basic or applied research which is defined as work that is aimed at improving or developing a product or process.
The credit can be used to offset a significant portion of the costs associated with R&D, and it is available to businesses of all sizes, but the size of the credit depends on the company’s tax bracket. The deduction can be taken regardless of whether the R&D is conducted in-house or by outside contractors.
Companies can rely on it as a long-term planning tool. Businesses can elect to take the R&D tax credit as a current-year deduction or as a credit against their federal income taxes. The credit can also be carried back three years or carried forward twenty years.
We take the pressure off of you by authoring your technical reports, reviewing claims and eligibility, and ensuring everything possible is done to maximize your claim. With decades of combined experience, our technical and service experts make your process easy and your claim more accurate.
Frequently Asked Questions
Q:How do I qualify for the R&D Tax Credit?
- Developing new or improved products, processes, or services
- Testing prototypes or models
- Developing software
- Commercializing new technologies
Q:How much can I claim with the R&D Tax Credit?
Q:What is the best type of R&D Tax Credit for your business?
Q:How much can I save with the R&D Tax Credit?
Q:What expenses are eligible for the credit?
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Talk to one of our experts to see how outsourcing your R&D tax claims to Boast can get you more money back from the government and help you regain the time you need to run your business.
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