Research and Development Tax Credits

Investing in product and process innovation not only benefits your business, it can reduce your tax liability.  

First introduced in 1981, the research and development (R&D) tax credit has incentivized companies through cash refunds and tax savings. This has enabled them to create the jobs, enhance workforce skill sets, and expand the R&D needed to remain competitive in today’s global business economy.  R&D tax credits have been extended from federal as well as state lawmakers. Today, more than 30 states offer R&D tax credits for qualifying activities conducted within their borders. 

With specific experience in this specialized area of tax credits, Reznick Group can help you save money by  uncovering tax credit opportunities from your company’s R&D activities. If your company is involved in any of the following activities, you may be eligible to claim federal and state R&D tax credits:  

  • Development of new products, processes, designs, formulas, certain software, techniques
  • Improvement of existing products, processes, designs, formulas, software, techniques
  • Creation of more reliable products, processes, designs, formulas, software, techniques
  • Development of design prototypes, models, tools, jigs, molds, dies
  • Application for patents
  • Testing of new concepts and/or development of new technology
  • Employment of outside contractors for any of the above activities  

Services

  • R&D credits studies to identify qualified expenditures often missed by many companies
  • Advice and implementation assistance to assure documentation meets IRS requirements
  • Assistance with US GAAP – IFRS tax reserves issues surrounding R&D credits
  • Assistance with IRS and state tax auditors’ examinations of the credits calculations
  • Analysis of open years’ returns for unidentified credits and amending of returns for refunds