The Research and Development (R&D) Tax Credit is designed to keep top talent and innovation thriving in the United States. This credit is an incentive that rewards companies who continue to innovate within their business industry. There is no requirement that your company’s R&D needs to be revolutionary to the world. Projects and initiatives that are evolutionary, or incremental to your business, can also qualify. In addition to the federal credit, many states now offer similar incentives for R&D.
R&D Tax Credits Available for Every Business and Industry
Many wrongly think that the R&D tax credit applies only to companies that actually employ scientists. But if your team includes a range of machinists, engineers, or software developers, developing new systems and designs, then you may be entitled to a piece of the tax-credit pie.
The R&D credit provides a competitive advantage and encourages growth. This dollar-for-dollar credit can be used to reinvest into new research and product development, hire top talent, or even funnel back into marketing to increase sales.
Many leading companies claim the R&D credit, but that claim is often incomplete and/or at high risk of failing under audit. A Sensiba R&D Credit Study maximizes your credit potential while limiting audit risk.
What we offer
Engineering-based R&D tax credit studies customized to meet your needs.
Ensure your team stays focused on growing your business…we’ll handle adding fuel to the fire!
R&D Tax Credit Calculation
Engineering evaluation and accurate calculation for companies that meet the qualification guidelines, but either don’t invest heavily in R&D or prefer to shoulder more of the audit risk.
Start-up Payroll Tax Offset Study
For companies that meet the definition of an eligible small business, Sensiba provides an escalating level of due diligence as your credit amount increases. Companies with less than $5 million of gross receipts may be eligible to elect the powerful payroll tax offset option for up to 5 tax years.
Full R&D Tax Credit Study
A fully customized approach to maximizing and audit-proofing your R&D tax credit claim. Sensiba engineers will collaborate with your subject matter experts to evaluate projects, quantify the associated expenses, and develop a plan to maximize your credit amount.
NEWS, EVENTS, AND INSIGHTS
Related R&D Tax Resources
Oregon Offering Incentives to Semiconductor Manufacturers
Take advantage of the ERC tax credit before the upcoming deadline.
Extended through the end of 2021, The Employee Retention Tax Credit can be worth up to $26,000 per employee! The Employee Retention Credit (ERC) is meant to reward employers that kept employees on their payroll during the COVID-19 impacted months in 2020 & 2021.
Learn more about our research & development tax services through these frequently asked questions with answers.
What is the R&D tax credit?
The R&D tax credit is an incentive designed to encourage commercial investment in innovation. By offering a tax credit, the government hopes to stimulate research and development that leads to within various industries technological advancement and economicgrowth.
Who qualifies for the R&D tax credit?
Generally, any business can qualify for the R&D tax credit if they conduct research activities that meet criteria outlined in the legislation. This can include promoting innovation, reducing uncertainty, or fostering experimentation.
What types of activities qualify?
Qualifying activities must:
Attempt to create or improve a product or process, software, or formula
Involve a significant level of uncertainty
Include a systematic approach to experimentation
Be conducted for a permitted purpose.
Can a startup that doesn’t intend to pay taxes for years benefit?
Startups and small businesses can take advantage of the R&D tax credit. There are provisions that allow startups to use the R&D credit to offset payroll taxes instead of income taxes.
What documentation is needed to claim the credit?
Companies must document wages, supplies, and contract research expenses, as well as the qualified research activities they conducted.