Research & Development Tax Credits

The cost of doing business is high, but it’s possible to bring cash back into your business through the Research and Development (R&D) Tax Credit. Overall, any company that develops a new or improved product or process can realize substantial tax savings through the R&D Tax Credit.

One of the biggest misconceptions around the R&D Tax Credit is that companies need a dedicated internal R&D department to qualify, but that’s not the case. It’s the activities your business is performing, not the industry or the departments, that matter.

Do you qualify for the R&D tax credit?

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GIVING YOU THE GREATEST AVAILABLE ADVANTAGE

A broad range of improvements to products or processes can qualify your company for federal and state Research and Development (R&D) Tax Credits — particularly if you are a small business. Following an initial no-cost analysis, CohnReznick models available credits by year and jurisdiction, giving you the greatest available advantage. In addition, if unused credits are discovered, they can be carried forward or amended in prior year tax returns.

Benefits of an R&D tax credit

Reduction in federal and state income tax liability

Improved cash flow

Increase in earnings-per-share

Reduction of effective tax rate

Credit carried forward up to 20 yearss

Ability to claim credits from prior years

Reduction in Payroll Tax (applicable to startup companies)

Qualifying activities

Development of new, improved, or more reliable products, processes, and techniques

Development of prototypes or models

Design of tools, jigs, molds, fixtures, and dyes

Development or customization of software (licensed or sold)

Improving processes or the manufacturability of a product

Creating more efficient and environmentally friendly designs

CAD or 3D Modeling

Supervising technical personnel engaged in R&D/li>

Attempting to use new materials

Automation and/or streamlining of internal processes

Explore our services

For companies that have not claimed R&D credits previously, our process is designed to maximize your credit benefit while mitigating exam risks. Recent changes in the law and new court cases are challenging to navigate. Our specialists focus on delivering sustainable credits.
The R&D credit is extremely complex, even for the largest accounting firms. Technical errors or missed costs, including non-qualified costs, can ruin a claim. Our specialists can review your credit to help prioritize areas to improve.
An exam can come anytime and require extensive time and resources from a company. With our experience with federal and local exams your company will be able to focus more on the business while we help guide the exam process to a successful.