It’s important to remember that the claims process may vary slightly depending on your industry and research activities.
How Are R&D Tax Credits Calculated?
R&D tax credits are calculated by comparing the current year’s R&D expenses to a historical “base” period – typically, the three previous years.
The R&D Tax Credit Claim Process
There are three main steps involved in the R&D claim process:
Step 1: Feasibility Study
We deploy a team of experts to work on your file and monitor the program and funding options. Our specialists conduct a comprehensive review to identify all eligible projects, research activities, and innovation endeavours to determine the viability of credit.
Step 2: Analysis and Claim Optimization
We then analyze the information gathered in our assessment and prepare a claim optimization strategy to strengthen your claim and maximize your federal and state credits.
We also prepare the technical write-ups and necessary financial documentation to support your claim. This includes helping you to implement an R&D documentation system to ensure records of your research activities are kept up to date.
Step 3: Form Preparation and Claim Submission
We then finalize your R&D Tax Credit Summary report, this includes preparing both federal and state Pro Forma forms on your behalf.