Nearly every business owner and manager would like to reduce the amount of federal and state income taxes owed. The extra amount available through such a reduction could be invested into the business through additional equipment purchases, additional staffing or new sales and marketing campaigns. While the pandemic created compelling savings through programs like the Employee Retention Tax Credit, they are only temporary and will not last. However, businesses should not despair, because there is a significant savings opportunity available through the Research & Development (R&D) tax credit.
A common misconception is that a formal R&D function is needed to claim the credit. This likely arises from the technical wording used in the four-part eligibility test. It includes the requirement that a project has developed a new or improved business component or process, eliminated an uncertainty, used a process of experimentation and is technological in nature. Although it seems that only a large business could meet these requirements, that is simply not the case. In fact, companies of all sizes across dozens of industries can qualify.
Protect Your Financial Future
PBMares’ webinar on October 6, 2021, provides more insight about the R&D tax credit, including eligibility rules, qualifying activities and more. Learn from Nick Perrine, Partner and Leader of the firm’s Credits & Incentives Team, Grayson Thomas, and Gavin Fung about the potential tax savings awaiting you. This webinar will cut through the confusing language and provide clarity on how your business can benefit.