The R&D Tax Credit is an incentive that provides credits for company expenses related to product or process improvements. It’s not a tax deduction, it’s an actual dollar-for-dollar credit against taxes owed or paid. Last year, we helped NYC manufacturers realize an average credit of $188K for their research and development efforts. If you haven’t applied, you’re leaving money on the table.
What are R&D Tax Credits? A government-sponsored economic incentive that allows businesses of all sizes to receive a credit for expenses spent on product and process development or improvement. A common misconception is that credit is made for scientists and white lab coat companies. That’s not the case! Virtually all business taxpayers can receive it. Any business that designs, develops, or improves products, processes or software may be eligible.
Eligible activities include:
- Developing new products or improving existing ones
- Automating or improving internal manufacturing processes
- Implementing cost reduction initiatives
- Prototyping and patent applications
- Testing new concepts, formulations, materials, tools, and procedures
- Hiring outside consultants (like ITAC!) for R&D eligible activities, including those mentioned above
- Everyday trial and error experimentation
ITAC has simplified the claims process for this lucrative credit. We work with R&D Credit experts who manage your preparation and application, and implement procedures to help you qualify in future years. Tax credits require specific knowledge, and you don’t want to chance it with a Google search. Our trusted partners have been vetted and proven to deliver results. Ready to learn more? Contact us today to get started.