R&D Tax Credit FAQ

R&D Tax Credit FAQ

Are you taking full advantage of the most underutilized tax incentive available to American businesses?

I don’t think my company invents anything, can I still qualify?

With the changes throughout the years to the qualification rules, more companies than ever before can now take advantage of the R&D tax credit. Essentially, the credit is designed to be a driver of innovation and improvement of processes – so if the projects that your company is performing aren’t all exactly the same, then it’s extremely likely that your company would qualify for the R&D credit.

Why does the government offer the R&D Tax Credit?

The intent of the credit is to encourage companies within the U.S. to keep technical talent within the country while simultaneously continuing to drive innovation. This keeps not only your company, but the country, competitive both domestically and internationally.

I have a CPA, why haven’t I heard of this?

Even though the credit has been around since 1981, the credit has gradually evolved over the years, with many companies not even able to take advantage of the incentive until the changes that were made in 2015. Due to its gradual evolution over the years, many CPAs may not be up-to-date on the most recent policies and regulations regarding the credit. We have partnered with thousands of CPA firms in the past and have been able to assist them in providing this service for their clients.

Does my company need to be in a specific industry?

Nope! There are hundreds of industries that qualify for the credit as it is fact specific to your everyday activities and work projects.

This sounds too good to be true. Is it?

Not at all! Fortune 500 companies have been taking advantage of the credit for decades, and now with the recent changes, more small to medium sized businesses than ever before are claiming the credit. But even with the increase in claims, only 5% of companies that qualify for the R&D Tax Credit are taking the time to do so.

Why should I partner with alliantgroup for this? Can’t I do this myself?

While the credit is available to businesses to take advantage of, the IRS isn’t simply handing out credits. alliantgroup has industry focused professionals, who understand and identify the key activities of your business that qualify. More often than not, companies who have claimed the credit on their own are not claiming the full value they are entitled under the tax code. It’s hard to stay abreast on all the changes within the credit, as it has changed more times in the last 5 years than in the previous 30.

I already claim this credit, why should we revisit this credit?

After claiming the credit, do you still have tax liability? If so, then it’s worth having our industry experts take a second look as it is commonplace for us to find 3-4 times as much as previously claimed. Regardless, with something as important as your business and financial well-being, it would never hurt to take a second look to ensure your company is receiving all the full value you are entitled from the credit.

Is this worth my time?

Absolutely. Since the changes in legislation and tax reform, the R&D Tax Credit remains one of the most valuable incentives offered by the U.S. government for businesses to remain competitive.

How does this all work?

alliantgroup offers a turnkey solution for businesses across all industries and CPA firms that are interested in pursuing the R&D Tax Credit. To learn more about the process, contact us for more information.

Want more in-depth information on how this applies to you?

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To see if you qualify for a state or federal R&D Tax Credit, please complete our form below.