We’ve helped many of our clients take advantage of both Federal and State Research and Development tax credit incentives in the current year as well as any year that is considered open by the IRS. This has infused cash back into businesses and has helped reduce and manage tax liabilities.
At the end of 2015, the R&D tax credit was made permanent and new provisions were added that make it even more attractive than ever. If your company has been in business of less than 5 years and has gross revenues of less than $5 million per year, you could potentially apply your R&D credits against payroll tax liabilities starting in 2017. If your business is considered an “Eligible Small Business”, which is defined by having less than an average of $50 million in gross revenue over the last three years, the R&D credits can be used to offset Alternative Minimum Tax.
If your business is in the following industries, you could potentially qualify:
- • Software Development
- • Engineering
- • Manufacturing
- • Pharmaceuticals
- • Construction