Research and Development Tax Credit
The Research and Development (R&D) Tax Credit is the biggest tax credit available to U.S. businesses, yet it is highly underutilized. The Wall street Journal estimated that only about 5% of eligible businesses are currently taking advantage of the R&D Tax Credit.
How Can You Benefit?
On Friday, December 18, 2015, the Federal R&D Tax Credit was made permanent after being pushed back multiple times since 1981. As one of the last western countries to permanently establish an R&D tax credit, the U.S. is joining its counterparts in highlighting the importance of and facilitating the R&D process. This law creates new benefits and opportunities for many companies with operations across the country. The R&D tax credit helps companies remain competitive by allowing a reduction of federal and state income taxes owed for qualified expenditures related to the development or improvement of a product, process, software, formula or invention.
The federal R&D tax credit can be used to offset federal income taxes to the extent that qualified research expenditures exceed a base period amount. Businesses that do not pay federal corporate income tax, such as S-corporations and partnerships, are allowed to pass along their Federal R&D Tax Credits to shareholders or partners.
The R&D tax credit can be claimed up to 3 years back, making many of your past projects eligible as well.
At Ayming, we specialize in managing R&D tax claims, helping you receive all you’re entitled to without taking unnecessary risks.
- Have I identified all eligible projects and activities?
- How do I make sure these projects are documented contemporaneously and written with the correct technological positioning?
- How do I ensure that all claimable time & expenditures are accounted for?
- When I file my claim, am I ready to be called into an audit?
- Can I streamline the technical and financial gathering process to minimize impact on my critical R&D resources?
HOW AYMING CAN HELP
- We will deploy a team of innovation specialists including an account manager. They will manage the entire claim process, including communication with government authorities, and minimize the impact on your R&D staff. Ayming has 30 years of R&D tax credit experience. Our proven client-centric approach offers the services to fit your organizational needs throughout every step of the claim process
- We will comprehensively identify eligible projects and write the claim/study with the appropriate positioning. Ayming supports over 15,00 R&D projects per year globally.
- We will identify eligible expenditures to maximize the value of your claim, review the documentation to confirm that it is supported, and provide recommendations on improving the supporting evidence.
- We will write up documentation based on government requirements.
- We will guide your claim through all steps, including a potential audit, until final resolution.