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What you should know about the R&D Tax Credit
  • Every successful company is potentially eligible for this credit. Depending on the business, even your day-to-day operations qualify. It's just a matter of having a total understanding of what is and isn't allowed with this credit
  • Recent guidance by the federal government has clarified the R&D tax credit rules in a more favorable light, suggesting that more companies are eligible than previously thought.
  • Big business is getting 93% of all R&D tax credit dollars - that's $5 billion in tax credits. Small and mid-size businesses deserve their fair share. After all, they represent over 98% of businesses in the US.
  • The tax credit is in addition to the tax deduction for R&D expenses. It is an actual dollar-for-dollar reduction against taxes currently owed and against taxes previously paid.
  • This credit is usually available for the last three years in addition to the current year. However, a business can take the credit for any open tax year. Additional years may be available, if the business is in a net operating loss or alternative minimum tax position.
  • Tax credits can carry forward for twenty years.
When you qualify for the R&D Tax Credit
  • The IRS sends you back cash - often lots of it.
  • Your company's overall effective tax rate will be lowered.
  • Your company's market value, earnings per share and cash flow will increase.
  • Click here for R&D Tax Credit Assessment Tool
Keeping your bottom line in the black

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R&D Tax Credit Assessment Tool
Did you know?
Unused Tax Credits can carry forward for twenty years.
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