Research and Development Tax Credit

Developing New or Improved Products or Processes? Benefit from Federal and State Research and Development Tax Credits, Here's How:

Eligibility:

• Spending Time and Resources to Create New or Innovative Products

• Researching and Developing Processes, Prototypes, Software, and Patents

• Improving Existing Products or Developing New Iterations or Models

• Employees or Contracts with Engineers, Scientists, and Designers

• Research Must be Domestic in the USA

• Must Bear Economic Risk of Loss

• Must Have Rights to the Developed Product or Process

Estimated Benefits of the Research and Development Credit:

• Ranges from Six to Fourteen Percent

IAC Will Guide You on the Four Part Test:

• Permitted Purpose

• Technological in Nature

• Elimination of Uncertainty

• Process with Experimentation

Qualifying Costs:

• Salaries and Wages

• Contractor Time

• Supplies

• Cloud Costs

States With A Research and Development Tax Credit:

• Thirty Eight States Have and R&D Credit

IRS Form 6765:

• Changes Effective for Tax Year 2024

Refundability:

• Go Back 3 Years to Claim the R&D Credit

Startup with No Tax Liability, No Problem:

• Less than $5M in Gross Receipts for Credit Year

• Beginning 2023, Up to $500,000 to Offset FICA Payroll Taxes