What’s in Store for Retailers When It Comes to R&D Tax Credits?
There is a misconception when it comes to R&D that it only applies to activities conducted in a lab. For this reason, among others, 80% of the $8 billion in R&D tax credits in the United States go to the nation’s largest companies, while many eligible companies do not claim at all or are under claiming.
Based on this misconception, companies belonging to sectors such as retail are often unaware that they may qualify for the credit. Thus, they do not explore how the activities they are performing to improve customer experience and inventory management may render them eligible. However, research and development, especially when referring to R&D tax credits at both federal and state levels, encompasses so much more than traditional research activities.