Benefits of the R&D Tax Credit
Since its introduction in 1981, the R&D tax credit has been one of the most significant incentives used by American business owners. Over time, with growing innovation and technical advancement, more and more firms have started to take advantage of this invaluable credit.
What Qualifies as R&D?
In their efforts to make new, more economical, and more versatile products, businesses often engage in activities and processes that can qualify under the R&D credit.
If your company is involved in any of the following activities, you may be able to claim the R&D tax credit:
- Engineering and designing a new product
- Conducting research aimed at discovering new knowledge
- Searching for ways to apply new research findings
- Evaluating or designing product alternatives
- Introducing significant modifications to the concept or design of a product
- Designing, constructing, and testing preproduction prototypes and models
- Engineering activity to advance a product’s design to the point of manufacture
- Utilizing systems processing modeling
- Conducting system and functional requirements analysis
- Experimenting with new technologies and materials to improve manufactured products
- Engineering to evaluate new or improved specifications/modifications in terms of performance, reliability, quality, and durability
- Developing new production processes during prototyping and preproduction phases
- Conducting research aimed to cut a product’s time-to-market
- Performing continuous research to obtain more efficient designs
- Paying outside consultants/contractors to perform any of the above activities
Why Should my Business Conduct an
R&D Study Now?
R&D is essential to a business for its growth and success. The U.S. offers some of the world’s richest R&D tax incentives, but chances are you’re not taking advantage of them and getting the cash you deserve. As the pace of your business accelerates and competition increases, you may be more likely to overlook this source of money because you lack the time, resources, or expertise needed to identify and manage R&D tax credit claims.
Calculate Your R&D Tax Credit
In 2021 alone, alliantgroup delivered over $2.3 billion in credits and incentives to over 14,000 businesses. And we do not want to stop here without helping you. Let our experts research and provide information that you need to understand how this credit can genuinely benefit your business.
Take our short quiz to get an idea of what this benefit can look like for your business today
Here Are Some of Our Clients' Success Stories:
Software DevelopmentR&D Tax Credits Realized
- Revenue: $30 MM
EngineeringR&D Tax Credits Realized
- Revenue: $15 MM
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Schedule a free consultation with our team of experts to learn more.
We’ll discuss your eligibility and help estimate your potential tax benefit.