Every year, companies claim billions of dollars in R&D credits, directly offsetting their tax liability. And every year, billions of dollars in credits go unclaimed because many companies don’t realize that they are eligible.
Any company, in any industry, that has devoted resources toward developing new products, processes, or software – whether successfully or not – is eligible. Even companies attempting only to improve their existing products, processes, or software are eligible.
The benefits can be significant, including increasing cash flow as much as 9.1% of qualified spending for federal taxes and as much as 40% of qualified spending in some states; reducing effective tax rates; and increasing earnings per share. In addition, more than 35 countries have R&D credits and incentives, benefits often more generous than those available in the U.S.
BDO offers the following services to help companies determine whether they are leaving cash on the table or could more efficiently and effectively claim their R&D credits:
Are you getting the full benefit of the R&D tax credit? To find out if you are receiving the full benefit of the R&D tax credit, use our tax credit calculator: R&D TAX CREDIT CALCULATOR
Want to connect with a local human? Email Lauren Soles lsoles@bdo.com to set up a call. Our local team is here to help answer your questions and to provide the best advice to help you minimize your tax liability and keep that money in your growing business.
Applications for Virginia businesses are due by July 1, 2019.
