U.S. Businesses Are Spending More on R&D Than Ever Before
In 2015, business research and development spending reached $356 billion in the U.S., putting R&D spending up almost 5% from 2014. Not only is R&D in the U.S. increasing, but companies are putting more of their own money into it as own company funding went up 5%. Not surprisingly, manufacturing companies accounted for 66% of domestic R&D.
The R&D Tax Credit is available to any of these companies developing new and improved products and processes, allowing a credit of up to 14% of eligible spending if the following four research criteria are met:
- technological in nature;
- new or improved products, processes or software;
- elimination of uncertainty; and
- process of experimentation.
Eligible spending covers payroll of direct labor, cost of supplies and developments, and contracted research services up to three years.
If you would like to find out how your company could benefit from R&D Tax Credits, please contact a Swanson Reed R&D Specialist today.