Home / Articles / The R&D tax credit is more available than you might imagine

The R&D tax credit is more available than you might imagine

April 14, 2015

Share:

Often companies with qualifying expenditures fail to realize they could capture R&D credits. Under recently developed government regulations, more industries qualify than in the past. And IRS regulations allow eligible taxpayers to “look back” to all open tax years (typically three years plus the current year) for potential R&D credits that were never claimed.

Middle market businesses are gaining particular interest in exploring this incentive since the alternative simplified credit (ASC) process went into effect in 2007, easing the method of calculating the credit due to them. But the regular credit calculation, a more complex process than the ASC, has the potential to result in a greater credit for the right company. Engaging in an R&D tax credit study is generally the first step taken to explore either option.

The R&D tax credit certainly isn’t simple to claim, and it can’t be garnered by every business. But companies in a variety of industries have found that the benefits of tackling the credit study, and the subsequent application process, far outweigh the costs and complication. The process of reclaiming these funds has been successfully undertaken by private businesses across the country, including those in telecommunications, energy and utilities, the pharma and biotechnical sector, and financial services – in addition to manufacturing and distribution.

Further resources for understanding the R&D Tax Credit:

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a Clark Schaefer Hackett professional. Clark Schaefer Hackett will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.

Guidance

Related Articles

Article

2 Min Read

Standard business mileage rate will increase for the second half of 2022

Article

2 Min Read

Proposed regulations for inherited IRAs bring unwelcome surprises

Article

2 Min Read

Get your piece of the depreciation pie now with a cost segregation study

Article

2 Min Read

Dodge the tumult with a buy-sell agreement

Article

2 Min Read

Tighten up billing and collections to mitigate economic uncertainties

Article

2 Min Read

No parking: Unused compensation reductions can’t go to health FSA

Get in Touch.

What service are you looking for? We'll match you with an experienced advisor, who will help you find an effective and sustainable solution.
  • Hidden
  • This field is for validation purposes and should be left unchanged.