The US government provides billions of dollars in tax credits to innovative businesses to encourage and reward the development of new or improvements to existing technologies, products, materials, and processes.

These credits, referred to as Research & Experimentation or Research & Development tax credits, were permanently extended to U.S. taxpayers pursuant to The Protecting Americans from Tax Hikes (PATH) Act of 2015.

The government encourages companies to go back to previous years to see if credits can be taken retroactively. You may be able to reduce past, current and future years’ federal tax liabilities, including income tax and payroll tax.

The Qualification Equation
The policy underlying the research and development tax credit program is to incentivize tax-paying companies to “invest” in R&D activities by reducing companies’ tax liabilities by the amount of money spent on those activities.

Generally, the R&D tax credits are equal to a certain percentage of a business’ qualified research expense (QRE) in excess of a base amount. QREs may include the salaries of employees and supervisors that conduct the R&D activity, the cost of supplies necessary to conduct the R&D activities, and, in some cases, the cost of hiring third-parties to help conduct the R&D activity.

R&D tax credit eligibility largely depends on whether the R&D activity meets the 4-part test established by the IRS.

Strike, our proprietary R&D tax credit Assessment process, is designed to position your company for long term success. R&D tax credits are an immediate and ongoing source of capital to utilize without restriction.

Contact us now to find out how our experience can benefit yours.