Research and Development Credits
R&D Tax Credits: A Strategic Advantage for Your Business
The R&D Tax Credit is a federal incentive that offers a dollar-for-dollar reduction in tax liability for companies engaging in activities related to the development, design, or improvement of products, processes, formulas, or software. Enacted in 1981 to stimulate innovation within the U.S., this credit has become a vital tool for businesses aiming to enhance their competitive edge.
Who Qualifies?
A wide array of industries can benefit from R&D Tax Credits, including manufacturing, technology, life sciences, and more. If your company is involved in developing new or improved products or processes, you may be eligible. Even startups with no current tax liability can utilize the credit to offset up to $500,000 of their federal payroll tax liability annually.
Benefits of R&D Tax Credits
• Financial Savings: Receive up to 7-10 cents of federal R&D tax credits for every qualified dollar spent. Additional savings may be available at the state level.
• Increased Cash Flow: Enhance your cash flow, allowing for reinvestment into your business operations.
• Competitive Advantage: Lower your effective tax rate, enabling you to allocate resources toward innovation and growth.
Partner with KBF
At KBF CPAs, we specialize in simplifying the complexities of tax regulations so you can take full advantage of R&D Tax Credits. Our experienced team will help you identify qualifying activities, calculate your credits, and handle filing.
Partner with us to leverage R&D Tax Credits and propel your business forward. Contact Brian Applebaum at bapplebaum@kbfcpa.com today to learn more about how KBF CPAs can assist in navigating this valuable incentive.
