Rewarding Research, Development & Innovation
In a time when many companies are seeking to expand tax savings, the R&D Tax Credit remains an underutilized tax-saving tool. The misperception that a business needs a formal R&D function, that existing business activities will not qualify, or the credit is just for pharmaceutical or manufacturing companies results in a missed savings opportunity. Many are surprised to learn they are eligible for activities related to a new or improved product, software, invention, technique, or for creating a new business process. In addition, expenses for work with a third-party researcher or contractor may also qualify. The truth is that many California and Texas companies have qualifying activities but have not stepped forward to claim the credit, and the savings opportunity generated can be quite significant, depending on specifics.
R&D Tax Credit Details
The credit is designed to incentivize businesses to increase research and development activities and engage in innovation.
Unlike other federal tax credits, the R&D tax credit amount varies between companies and is based on several factors. It is a general business credit and can be used to offset the current federal tax liability of a corporation. Also, in situations where the credit is limited or can not be claimed in the current tax year, it may be carried back one year or carried forward twenty years. In addition, if certain criteria is met, the credit may also be applied against payroll taxes owed.
Companies in many industries with relevant expenses and based on general business activities are naturally good candidates. They include, but are not limited to, businesses in the agriculture, architecture, chemical, engineering, construction, electrical/mechanical contracting, life sciences, manufacturing, systems integration, and software industries.
JLK Rosenberger has significant experience working with Los Angeles, Orange County (CA), and Dallas (TX) area companies to claim the R&D tax credit. Our team of professionals can work with you to identify qualifying activities, review expenses, and determine eligibility. Once confirmed, we will turnkey the entire process from initial documentation to preparing the IRS submission to claim the credit. JLK Rosenberger stands ready to help your business claim this significant tax-saving opportunity.
Are you interested in learning if your business can qualify for the R&D tax credit? In a brief consultation, our team can determine if you qualify and estimate the potential tax savings involved. Now is the time to investigate this opportunity for your business. Complete the form above and a member of our team will reach out to discuss your needs.