If you’re a business owner and have been spending money on Research & Development (R&D) activities, you may qualify for the R&D Tax Credit. This credit can be worth between 7% and 10% of your Qualified Research Expenditures, so it’s worth taking a closer look. With the help of Benchmark Human Capital, you can learn if you qualify for the R&D Tax Credit and how you can claim it. Let's get started!
What Is the R&D Tax Credit and Could Your Company Qualify
What Is the R&D Tax Credit and Could Your Company Qualify
Product Improvement
One of the most common misconceptions about the Research & Development Tax Credit is that it only applies to new product development. However, this credit can also be claimed for activities that improve existing products. If your organization is making modifications or improvements to an existing product, you may be able to claim the R&D Tax Credit. Learn if you qualify at Benchmark Human Capital.
Development Processes and More
The Research & Development Tax Credit can also be claimed for other activities. For example, if your organization has developed a new manufacturing process or enhanced the quality of an existing one, you can claim this credit. Any activity that leads to greater efficiency and improved productivity could qualify as Research and Development (R&D) eligible under Section 41(d)(C).
Specifically Hired Individuals
To qualify for the Research & Development Tax Credit, your organization doesn’t have to conduct all of the R&D activities in-house. If you have hired designers, engineers, or scientists specifically for their expertise in R&D, you can claim this credit for their salaries. At Benchmark Human Capital, we help you understand the "hiring credit" which can be applied against your payroll tax for up to five years.
Devoted Time and Resources to Product
Many companies spend a significant amount of time and resources on Research & Development. If your organization has devoted time and resources to creating new or innovative products, then you may qualify for the Research & Development (R&D) Tax Credit.
If your company is spending money on R&D activities, you may be able to claim the Research & Development Tax Credit. Learn more about the R&D Tax Credit at Benchmark Human Capital.