WHAT IS THE R&D TAX CREDIT?
The Research and Development (R&D) Tax Credit is a dollar-for-dollar reduction, within certain IRS regulations, of a taxpayer's income tax liability. The credit has been around for over 30 years and is often underutilized by eligible taxpayers. The credit is often confused as a deduction, but in actuality, is a credit that reduced a taxpayer's income tax liability.
Businesses that spend money for research and development (R&D) activities for new products or processes should be aware of the R&D Tax Credit. Depending on the amount of R&D expenditures, the credit could substantially reduce the business's income tax liability.
In recent years, there have been favorable legislative tax law changes for small to mid-cap businesses. We can work with your current CPA, or tax preparer, to review your current business structure, financial situation, and income tax strategy for potential additional income tax savings.
Our fee is contingency based, which means that we are only compensated when there is a reduction in your income tax liability.