Ensure whooping R&D tax relief

Every year, state and federal agencies in the United States of America provide assistance of millions of dollars to companies involved in qualifying research. This amount is generated by levying credits on profit making companies in the concerned industries. Further, through a systematic process, financial assistance is provided to companies performing research and development works. If your company is doing some research that could prove beneficial then you can also expect R&D tax relief from the government.


There are multiple benefits of R&D tax relief that you can enjoy as an entrepreneur. Some of the main benefits of R&D tax relief include:


  • You are likely to get up to 13.5 cents of R&D tax credit for every qualified dollar.

  • In a good number of cases, you are provided a dollar-to-dollar reduction in your federal and state income tax liability.

  • With heavy relief in R&D tax, you can witness surge in your earnings-per-share.

  • It also helps in reducing your effective tax rate by a substantial percentage.

  • As per a common practice, your credit gets forwarded by up to 20 years.

  • You also get the facility to recognize unclaimed credits for open tax years that generally lasts for three to four years.


Key industries that are benefiting from R&D tax relief include:


  • Manufacturing and Fabrication

  • Software Development

  • Engineering

  • Architecture

  • Pharmaceutical

  • Aerospace & Defense

  • Food Science

  • Tool & Die Casting


Barring, few places in the United States of America, almost everywhere this R&D tax relief is applicable. The most popular places where you can get R&D tax relief include: New Mexico, Iowa, Ohio, South Carolina, Kansas, Vermont, Michigan, Florida, and Maryland. You are unlikely to get any benefit of R&D tax relief in Alabama, Nevada, Montana, West Virginia and Missouri.


With the help of these tax reliefs you can be sure to do a wide range of works like developing new software, beta testing, experimenting with technologies etc.