Private businesses in particular should note the added value that the R&D tax credit can offer during mergers and acquisitions. The credits can be claimed in one year and taken in another, making it possible to transfer them to a buyer. They also offer validation of a company’s ability to innovate. Some companies claim the R&D credit annually for the specific purpose of enticing an M&A opportunity. They believe it shows potential buyers or investors that they have an attractive and valuable technology.
Further resources for understanding the R&D tax Credit:
