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.
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
Fuel your growth by continuing to invest in technology-based innovation.
New ways to monetize
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
THIRD PARTY EXPENSES
Performed by non-employees and contractors; 65% of contract research expenses may be eligible
Non-depreciable, tangible personal property used in development activities, generally consumed or destroyed during process
TOTAL R&D SPEND
CREDIT AMOUNT* $116,715
*For most companies the credit is 10% of qualified research expenditures.
Do you qualify?
Sample of Qualifying Businesses
Computer science based product/service development
Discovery and design of new materials, particularly solids
Agriculture, food production, medicine
Mobile, manufacturing, and medical
Innovative or novel materials development
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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.