What Is the R&D Tax Credit?
R&D Tax Credits (or Research and Development Tax Credits) refer to the IRS’ R & D Tax Incentives paid by the United States government to companies who invest in Research and Development. These Tax Credits are available to all US companies who perform qualifying R&D and file the required financial and technical documents (including form 6765). These credits are described under IRS Section 174 (Research and experimental expenditures) and Section 41 (Credit for Increasing Research Activities).
Who Qualifies for The Federal R&D Credit?
A Company Qualifies When One or More of These Criteria Are Met:
- Invests time, money or resources to advance or continuously improve their products or processes
- Maintains a staff of technical personnel such as engineers, designers, lab technicians, or chemists
- Implements cost reduction initiatives
- Attempts to use new materials
- Adds new equipment
- Develops prototypes, jigs, fixtures, or molds
- Automates or streamlines internal processes
- Develops new technologies
- Develops lean manufacturing
- Performs testing functions
- Develops, implements, or upgrades systems or software
- Develops proprietary software applications for resale
- Obtains patents
- Fights to survive international and domestic competition
- Spends money on outside consultants to do any of these things
- Relies on engineers or other technical personnel, either as employees or on a contract basis
How Can Firms Claim the Credit?
By contacting The Concorde Group we will provide you with a no-cost projected analysis for the amount your firm or client can expect to receive. Our fees are fixed, and based on the scope of work, not contingent on the credit amount.
