The Criteria for Qualifying for an R&D Tax Credit Claim

Does Your Company Qualify?
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Let our talented team of tax professionals at PriceKubecka in Addison, Texas, find new ways to help you save money on your taxes through research and development (R&D) tax credit studies. This incentive exists within the tax code to encourage innovation and experimentation that leads to the creation of new and improved products, or technologies.

Industries That Qualify for Research & Development Tax Credits

Architecture firms engaged in any of the following activities are likely to be eligible for R&D tax credits:

  • Design of innovative and enhanced systems (HVAC, refrigeration, ventilation, plumbing, piping, and fire protection are a few examples)
  • Planning structure and office outline for constructability
  • Plan of interesting infiltration frameworks and flare stations
  • Development of remarkable outlines, material choice, procedures, and procedures geared for building enhanced structures

Software Development companies engaged in any of the following activities are likely to be eligible for R&D tax credits:

  • Creating programming that is offered available to be purchased, rent, license or vendor third party use
  • Generating computer software for a microprocessor-based instrument that promotes and controls a production machine
  • Developing computer software for a computerized system that regulates the operation of an innovative process
  • Programming software source language

Manufacturing companies engaged in any of the following activities are likely to be eligible for R&D tax credits:

  • New or improved products, designs, equipment, and manufacturing processes.
  • Development of a new or improved prototypes.
  • Design and evaluation of alternative methods aimed at improving cost-effectiveness and product performance.
  • Development of synthetic body parts.

Engineering services invest a substantial amount of time performing activities that may qualify them for a R&D Tax credit

  • Evaluation and analysis relating to the performance of synthetic polymers for use in a specific application
  • Developing safeguards for site examination, soil and water investigation, and improvement of an appropriate ground remediation procedure
  • Design and development of a new chemical product for consumer use
  • A pre-construction analysis relating to the refurbishment of an older factory building to human housing

Information Technology and Communication companies engaged in any of the following activities are likely to be eligible for R&D tax credits:

  • Creation and testing of innovative prototypes
  • Development of custom communication networks
  • Improvements or innovations in large-scale networks
  • Design of improved means for data management
  • New or improved human-computer interaction technologies

The common misunderstanding about the Research and Development tax credit is it is for mainly traditional white lab-coat activities and manufacturers. However, recent legislation has broadened the industries and companies that qualify for the credit. Other industries that may present eligible activities include:

  • Apparel
  • Automotive
  • Food and Beverage
  • Professional Services
  • Many more industries, contact us to see if you qualify.
claim R&D tax credit

Is my company eligible for R&D tax credits?

Eligibility for tax credits will depend on several factors. You must be able to past a 4-part test for QRAs that you qualify for the research & development tax credit. Contact PriceKubecka, and we will review your tax return and help make the best decision for your organization.


How much can my company claim in R&D tax credits?

For your company to be eligible for R&D tax credits will depend on a variety of factors. You must be able to prove there was an element of technological uncertainty in the research & development you were undertaking and no current expert has the knowledge or capabilities to perform the advancement you were seeking.

How do I claim my R&D tax credit?

PriceKubecka can help you determine if you qualify for an R&D Tax credits and how to claim it. We can answer this through a brief phone consultation or visit your office. If you are a current client, a review of your accounting can be done in our office or via a webinar.