Recent Statistics Prove R&D Credit Growth
The IRS’ most recently released data for tax year 2012 shows statistics for the R&D tax credit, forecasting a promising future and gives the top industries fueling the progression.
Total R&D credits surpassed $11 billion, a $1.5 billion increase from 2011. The total number of companies claimed rose 8.2% from the previous year, totaling 15,873. The average claim amount equaled $694,000 growing from $645,000 in 2011.
More than half of the claims came from companies with less than $10 million revenue, putting the small business myth to rest. The top ten industries behind the claims included the usual suspects as well as a few industries that are not commonly associated with R&D, proving that any industry can benefit from the credit.
- Manufacturing — $6.7 billion
- Information technology — $1.8 billion
- Professional and technical services — $1.1 billion
- Retail and wholesalers — $775 million
- Finance — $265 million
- Mining — $80 million
- Utilities — $52 million
- Real estate — $ 28 million
- Construction — $25 million
- Transportation and warehousing — $21 million
From this current picture, the future of R&D credits is looking bright. Contact a Swanson Reed specialist to find out if you qualify for the R&D credit.