The Federal Government and many states are strongly encouraging you to take advantage of the R&D Tax Credit and reinvest the savings back into your business to be more competitive.
When Congress enacted the R&D (research and development) Tax Credit in 1981, it fully intended for the credit to be used by businesses of all sizes. However, this did not occur for a variety of reasons. So, in the early days, the only companies taking advantage of this benefit were big businesses.
Today, after 27 years of changing the tax code and increasing government incentives, the R&D Tax Credit has become popular among small and mid-size businesses in more than 40 industries.
Given the R&D tax credit remains a highly specialized section of the tax code, CPA firms nationwide rely on BLG as their trusted specialist when it comes to addressing the R&D needs of their clients.
"I am amazed how many companies do not realize or understand the IRS's definition of R&D tax credits.
If you make or improve a product or process, either for yourself or your customer, you have activities that qualify for the R&D Tax Credit.
This credit can substantially reduce your federal and state tax liability."
Benjamin Rashleger, Former President, WSI Industries, Monticello, MN