Berntson Porter Coronavirus Resource Center Details

BP Blogs

LIKE WHAT YOU READ? Share this article :

R&D Credit: Are You Overlooking a Dollar for Dollar Credit Against Your Taxes?


If your company performs research and development, you should consider taking advantage of the R&D Credit. This credit is a government-sponsored cash incentive to stimulate research and development in nearly every industry, and in companies of nearly every size.  The R&D tax credit is an opportunity for an immediate source of cash and a significant reduction to current and future years’ federal and state tax liabilities.

Any company that designs, develops, or improves products, processes, techniques, formulas, inventions, or software may be eligible. Even a company that has simply invested time, money, and resources toward the advancement and improvement of its products and processes may qualify.  It’s not uncommon for companies to overlook the fact that their day-to-day efforts of process and product improvement may entitle them to this newly-defined beneficial tax credit.

Though the following is an abbreviated list, if you do, or have done, any of the activities below, you may qualify:

It is important to note that the R&D credit expired on January 1, 2012. However, it is currently on the fast track for reinstatement in Congress. This particular credit has been around since 1983 and has been renewed or retroactively extended 14 times.