top of page

R&D Credits Explained

Congress enacted R&D Tax Credits in 1981 and according to recent IRS data, has since been expanded through several administrations. It was designed to help American businesses be more competitive and keep jobs in the USA and in their local communities. The Federal Government rewards companies who innovate, expand their business and develop or improve existing products or services. Additionally, over 40 States also offer Tax Credits and Incentives at the State level. 

Why don’t more small companies take advantage of these Incentives & Credits? 

While approximately 6 out of 10 large companies take advantage of these Tax Credits & Incentives, fewer than 5% of small companies apply for them. The reason is in most cases, they just don’t know about them. 

If you qualify for these Tax Credits & Incentives for previous years, wouldn’t you want to find out about them? 

Did you know your small business may be eligible to receive congressionally mandated Tax Credits & Incentives you and your CPA probably didn’t even know existed? 
Did you know your small business may be eligible to receive congressionally mandated Credits & Incentives you and your CPA probably didn’t even know existed? 

The IRS reported [1] recently over 15,000 large businesses claimed the R&D Tax Credits they were entitled to with an average benefit of over $650,000. [2]

 

However, according to the Wall Street Journal [3], only 5% of small businesses claim these Tax Credits and Incentives, even though most small businesses are entitled to them!

Fichtner-R-and-D-Tax-Credit-Chart-2.png

Note: [1] http://www.irs.gov/uac/SOI-Tax-Stats-Corporation-Research-Credit

Note: [2] Includes returns of active corporations, other than Forms 1120S, 1120-REIT, and 1120-RIC

Note: [3] http://www.wsj.com/articles/SB10000872396390444025204577543060812237798 

Debunking 5 R&D Tax Credit Myths 
Myth #1: These Credits and Incentives are only for large companies

Nothing could be further from the truth. Whether you have a company with hundreds of employees or are a sole proprietor, you may very well qualify for these Credits and Incentives that could be worth tens of thousands of dollars to you.

1-636-346-4096

Contact us to see if your business could benefit from the R&D credit program.

bottom of page