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Tax Savings for Cybersecurity Providers

cyber-securityFrom personal banking transactions to top-secret telecommunications, cyberattacks are an ever-present danger. Government contractors, IT firms and cybersecurity companies are imperative for information security. These types of businesses stay competitive by retaining top talent as the industry requires highly complex, technical work. Powerful government incentives exist to help businesses create and keep technical jobs in the United States.

The R&D Tax Credit is the most lucrative tax credit offered at the federal level. There is a common misconception that government work cannot qualify for this credit, but government contractors may also be eligible. Any company that performs technical work in the United States can receive this dollar-for-dollar, wage-based credit; the higher a company’s payroll, the more money back it can receive. This credit particularly benefits IT businesses because they have well-paid, technical staff such as software developers, network engineers and systems integrators.

The follow activities can qualify for the R&D Tax Credit (this is by no means an exhaustive list):

  • Designing software or networks according to new or enhanced security protocols
  • Incorporating newer technologies and capabilities into existing systems
  • Developing structural software architecture
  • Integrating hardware, software and applications
  • Conducting validation testing to satisfy regulatory requirements
  • Programming or testing source code, new materials or prototypes

Firms may not be aware of the credit or may be underclaiming it. alliantgroup is the nation’s leading provider of the R&D Tax Credit. We have IT and software experts on staff as well as the tax expertise to help businesses like yours fully claim tax incentives.

Read our latest cybersecurity article in Security Magazine for more information.

If you would like to find out if your company is eligible, please contact Tracy Lustyan today for a free assessment or complete the form below.