A Quick R&D Tax Credit Rundown

What is R&D?

R&D stands for Research and Development. It is work directed to the innovation, introduction, and improvement of products and processes. The Economic Recovery Tax Act (ERTA) was passed in 1981 and acted as an economic stimulus. The tax credit ultimately acted as an incentive to encourage investment within the united states.


Quick Facts:

1. Permanent status beginning in 2016.

2. Designed to stimulate innovation, introduction, and improvement of products in the United States.

3. Tied to specific activities of a company.


The Research and Development Tax Credit is one of the most powerful tax incentives, providing benefit at both the federal and state level.


The Benefits:

1. Hidden & immediate source of cash.

2. Dollar-for-dollar credit against taxes owed or paid.

3. Available for all open tax years,

4. Many industries qualify.


Check out our next post for commonly asked questions about the R&D Tax Credit.

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