Does Your Business Qualify for the Research and Development (R&D) Tax Credit?

Depending on the industry, did you know that many of your everyday operations might qualify for dollar-to-dollar reduction of your income tax? If your company creates products that are faster, less expensive, more durable, dependable, or precise, the R&D tax credit can help increase cash available to reinvest in your business that you would have paid in taxes. Often, business owners believe they do not qualify for this type of credit unless they are in the scientific field or have a designated R&D department. This could not be further from the truth. These “typical” companies only make up about 10 percent of all credits claimed.

Some of the most common industries are:

  • Agribusiness
  • Apparel
  • Architecture
  • Automotive
  • Construction
  • Engineering
  • Food and Beverage
  • Health Care
  • Life Sciences
  • Manufacturing
  • Oil and Gas
  • Professional Services
  • Retail
  • Software Development
  • Technology

In 2014, 100,000 US taxpayers claimed over $12 billion in R&D tax credits. There is no limit to the amount available to U.S. taxpayers each year, and many dollars go unclaimed. Regardless of industry, any company that develops new or improved products, processes or software could be eligible. Do not miss the opportunity to evaluate your business and find out if you qualify today by calling us at 972.888.0950!

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Mohsena Wahed, CPA
As PriceKubecka's Tax Manager, Mohsena responsibilities include overseeing the tax department, solving client problems, and continuing to develop an in-house mentor program for interns and new staff. Her industry experience includes construction, manufacturing, and real estate, as well as proficiency in research and development tax credit studies. A native Dallasite, she graduated with her bachelor's in accounting from The University of Texas at Dallas.

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The research and development credit of IRC § 41 can be a significant advantage for businesses that develop, design or improve products, techniques, software and similar activities. It can be calculated under either the regular research credit (RRC) method or the alternative simplified credit (ASC) method.

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