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The Research and Development (R&D) Tax Credit

The Research and Development (R&D) Tax Credit is a unique and lucrative tax incentive. It helps to reduce current and future years of state and federal tax liabilities, resulting in a dollar-for-dollar offset on both state and federal income taxes based on R&D W-2 wages, R&D Supplies, and R&D Contractor Expenses.


The credit offers an instant source of cash for small to medium-sized businesses and can be applied to all open tax years (3 years back federal) as well as the current tax year. It was implemented to target taxpayers that design, develop, or improve products, processes, techniques, formulas, or software.


The R&D tax credit is calculated on the basis of increases in research activities and expenditures, and as a result, is intended to reward companies that pursue innovation with increasing investment. In addition to the federal R&D Tax Credit, many states also offer their own R&D Tax Credit benefits.

Learn how the R&D Tax Credit can can benefit your business

incentAdvise has over 20 years of experience successfully helping clients receive R&D Tax Credits in a wide variety of industries. The following are a few examples of how incentAdvise has assisted companies through the R&D Tax Credit:

  • Helped a medical device company install a new manufacturing line to increase capacity and capability. (Credit received $50k)

  • Enabling a kitchen and bath remodeling retailer to set up a new showroom with virtual tour capability (Credit received $35k)

  • Innovating with a software engineering company to provide 3D drawings of proposed infrastructure projects (Credit received $25k)

  • Assisting an OEM to develop 3D printing to provide prototypes/samples for proof of concept with customers (Credit received $40k)

  • Partnering with a construction company to invest in equipment capable of detecting underground utility lines and other risk mitigation before initiating projects (Credit received $30k)

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