Research and development tax credits have become more attractive for small companies in recent years because they’ve been simplified, can be transferred in an acquisition, and can be taken retroactively.  Start-ups especially benefit because their initial expenses are typically incurred in the early stages when income is lesser, and the credits can be carried forward to years where the company is profitable.

Who Should Consider Research and Development Tax Credits?

The rule of thumb is if you have an engineer on staff, you probably have research and development expenses you should be capturing.  If you’re undertaking research that’s technological in nature, with a process of experimentation to eliminate uncertainty, you may also have qualified research and development expenses.  Click here to read Forbes article on “Eight Myths That Keep Small Businesses From Claiming the R & D Tax Credit”.

How We Deliver

We’ll help you understand, analyze, capture, and quantify your qualified research expenses. There are various methods available under the tax code for determining the amount of credit a business is entitle to.  We will help you determine which method yields the best result.

Contact us to learn what is permissible as qualified expenses, and we’ll help you determine if you qualify for the credit.   If you’re in early start up stages, we’ll explain what information you need to document and report expenses that will be used in computing a credit carry forward.