R&D Tax Credits
Make You More Competitive

Maybe you’ve heard the government has loosened the requirements and broadened the benefit for claiming research and development (R&D) tax credits.

Before you decide your company isn’t eligible for these credits, you should know you may be missing out on hundreds of thousands or even millions of dollars straight to your bottom line by dismissing this too quickly. The name itself is deceptive, as many basic manufacturing, telecom, construction, engineering and architectural, even some farming activities may qualify – in addition to the more obvious software, biotech and other high-tech industries.

Many business activities involved in the design and manufacturing of both physical and digital products now qualify for generous tax credits – and credits are far more valuable than tax deductions because every penny falls straight to your bottom line (whereas with deductions, only the percentage equal to your tax bracket falls to your bottom line).

So it’s worth a few minutes of your time to see whether your business actually qualifies after all – especially now that, for the first time, it’s both easier and more lucrative to apply for these tax credits. Until recently, it was only practical to claim credits for the current filing year. However, businesses can now claim credits for up to four years of payroll costs.