Research & Development Tax Credit (R&D)
for 2020 and 2021
Money for your company
A TAX CREDIT FOR WORK YOU’VE ALREADY DONE
Companies claim billions in R&D tax credits each year, but most still go to large corporations. Now startups and SMBs can take advantage of America’s biggest tax incentive.
What changed?
The federal R&D tax credit was originally established in the early 1980’s to stimulate growth in the US economy. Recent legislation has changed the game, broadening access to this significant benefit.
COMPANIES HAVE ACCESS TO A NEW FORM OF NON-DILUTIVE CAPITAL THAT NEVER EXISTED BEFORE
The impact
Fuel your growth by continuing to invest in technology-based innovation.
New ways to monetize
Software clarification
ItS Here to stay
A tax savings scenario
A tech startup based in San Francisco raises $4M to develop smart dental technology & insurance products. In 2020, $1.16M of this capital is spent on qualified innovation activities as follows:
SALARY AND WAGE EXPENSES
Often the largest component; (1) W-2, Box 1, for research, direct supervision, direct support; must be US based
$1,102,000
THIRD PARTY EXPENSES
Performed by non-employees and contractors; 65% of contract research expenses may be eligible
$41,145
SUPPLIES
Non-depreciable, tangible personal property used in development activities, generally consumed or destroyed during process
$24,000
TOTAL R&D SPEND
$1,167,145
CREDIT AMOUNT* $116,715
*For most companies the credit is 10% of qualified research expenditures.
Do you qualify?
Sample of Qualifying Businesses
Software
Computer science based product/service development
Material Science
Discovery and design of new materials, particularly solids
Biotech
Agriculture, food production, medicine
Device Manufacturers
Mobile, manufacturing, and medical
Retail
Innovative or novel materials development
AI/Machine Learning
AI powered tech solutions
Ready to get started?
Schedule a free consultation with our team of experts to learn more. We’ll discuss the R&D tax credit and help you determine if our solution is a fit for your company.
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