Texas, The New Tech Hub

Texas has the potential of giving Silicon Valley a run for its money. Texas employs more workers that provide Internet services (ISP) than any other state and ranks second in the nation for the Computer Systems Design sector of the IT industry. Texas is home to 13,991 technology firms employing over 156,500 workers with an average salary of nearly $70,000. Here is what the tech industry workforce in Texas looks like:

IndustryFirmsEmploymentAverage Annual Wage
Computers and Peripheral Equipment11516,110134,351
Computer Systems Design and Related Services14,825122,40393,311
Software Publishers77817,464118,116
Data Processing and Related Services95628,94789,401
Internet Publishing, Broadcast and Web Portals5303,76375,053
Specialized Telecommunications and ISP’s941,68080,097

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.

Contact our team here at Swanson Reed to learn more about our R&D specialist services.

Source: texaswideopenforbusiness.com


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