Small businesses, startups, entrepreneurs, and family-owned businesses can apply for a research and development tax credit if they meet the criteria. This credit is substantial and can be up to 13.5 cents on every dollar that qualifies under the program.
This is not just a program for large enterprise companies. Many small businesses throughout the country meet the criteria but are unaware of the tax credit.
What Qualifies?
The research and development tax credit is designed to reward companies that are leading the way in their industry. It can be claimed by a business that designs, develops, or improves new or existing software, processes, formulas, or techniques. There is no restriction on the industry sector, which means any qualifying activity in research and development may qualify for the credit. Processes and products that are greener, more environmentally friendly, or that automate production can also qualify.
How to Claim the Credit
Perhaps the most daunting thing about the research and development tax credit is the process needed to make a claim. The business must write a technical narrative that supports the claim that an improvement or innovation has occurred and it is a direct result of the efforts and investment of the business.
Ideally, look for a company to assist you in preparing the necessary documentation on the research and results your company has achieved. Keep in mind, you do not need to have the final product completed, and the tax credit can be retroactive and carried forward to the completion of the project.
| To find out more about the research and development tax credit for your business, talk to the team at B. Riley Financial, Inc. Contact our experts for a free consultation. |
