Is your business maximizing your R&D tax credits?

Member news | June 02, 2023

Guest authored by FACC Member Jesse Bowman, Business Development Manager at FI Group. 

If you want to maximize your profits as much as possible, you can do it by taking advantage of the various tax credits available to businesses that invest in new products or processes within the US. These tax credits benefit both small and large corporations alike and are available to a wide variety of disciplines in the applied sciences field and other technical research areas.

One of this is the Research & Development Tax Credit.

R&D Tax Credit is a federal program providing incentives that rewards companies for conducting research and development within the United States. The main objective of the R&D Tax Credit is to grant funding so that companies can promote internal innovation, thus helping the overall economy. It is an excellent way for businesses of all sizes to obtain capital while stimulating research activities dedicated to enhancing their products and services.

Companies can receive up to 10% of their research and development expenses back through this program if they meet certain qualifications, including at least 5% of their total payroll on R&D activities during that same year.

The R&D Tax Credit aims to:

• Increase a company’s market value and cash flow.

• Lower a business’ effective tax rate.

• Reduce federal and state tax liabilities.

• Allow companies to keep more of their profits.

How can you apply?

Nowadays, most companies conducting product testing, employing engineers, engaging in data science and analysis, or outsourcing product research are eligible to claim the credit. To do this, the company has to present a component of hart science in the research to meet the incentive’s requirements.

Find out if your company qualifies for R&D Tax Credit

FI Group USA is committed to supporting innovative companies of all sizes in their research and development ventures. If you have recently invested in new products or processes and would like to know if you are eligible for R&D tax credits or refunds, we are the place for you. FI Group is an international tax consultancy that specializes in the implementation of state and federal tax incentives and the research and development (R&D) tax credits for corporations. The FI Group team consists of CPA’s, engineers, IT, legal, and business operation specialists.

For more information on the R&D tax credit and eligibility, contact FI Group today, represented by Member Jesse Bowman, Business Development Manager-, 845-248-6310.