The R&D Tax Credit is the biggest tax credit available to U.S. businesses, yet also one of the most underutilized. The Wall Street Journal estimated that only about 5% of eligible businesses are currently taking advantage of this 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. In addition, it can also be carried forward up to 20 years.
Why Work with Ayming?
- Global consulting firm dedicated to increasing funding and decreasing costs™.
- 30 years’ experience in R&D tax credits, in 15 countries, serving 20, 000 clients
- $400 million secured by Ayming in North American tax credits, $1.5 billion worldwide
- Team of experts identifying all your eligible projects with a non-intrusive approach