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Established in 1981, the Research & Development Tax Credit is a federal incentive that allows companies to reduce income tax liability in the current tax year, and receive a cash refund for taxes paid in the last three years.<\/p>
Many states have implemented their own version of the R&D Tax Credit, allowing qualifying businesses to claim both federal and state credits.<\/strong> In 2015, the Protecting Americans from Tax Hikes (PATH) Act made the federal R&D Tax Credit permanent and expanded its accessibility for qualified small businesses. With these changes, qualifying small businesses may claim the Payroll Tax Credit to offset some of their payroll tax liability.<\/span><\/p>The majority of businesses are unaware that their daily operations could qualify to a dollar-for-dollar Tax Credit, irrespective of industry or company size. An activity that meets the 4-part test is a qualifying research activity and can potentially qualify for claiming R&D Tax Credit.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Eligibility<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t
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R&D Four-Part Test<\/h2>\t\t\t\t<\/div>\n\t\t\t\t