DISCOVERING NEW TECHNOLOGY IS REQUIRED TO REMAIN COMPETITIVE
Without investment in research and development there is no way technology firms will be able to stay competitive and survive as a business. R&D is the lifeblood of technological advancement and is one of the reasons why the R&D tax credit was created — as an incentive for companies to develop new technologies here at home instead of overseas.
If you’re looking to benefit from the credit it is important to look at the guidelines behind eligibility and what is necessary throughout the R&D process. If you’re unsure about your eligibility we are here to help you. Familiarize yourself with the IRS’ 4-part qualifying test and take our eligibility test to find out if your business qualifies.
REDUCE YOUR TAX LIABILITIES AND INVEST IN INNOVATION
The R&D tax credit is an excellent way of reducing tax liabilities and enables the chance to invest in research and development for all tax-paying firms, even the youngest and smallest of start-ups. If you’re working on ways to improve products or processes there is a good chance you are eligible for the credit. The R&D activities you undertake need to be of a technological nature. If so there are many business expenses within the R&D processes that you can use in your claim. These include the costs relating to prototypes, inventions and creating pilot products. In 2012, the info tech industry received $1.8 billion in R&D credits from the government, while the professional and tech services industry received $1.1 billion. Find out how you can get a portion of that number.
For more information on the R&D Tax Credit in the state of Minnesota, please click here.
Contact your local Swanson Reed office to speak with a representative in your area today.
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