Research & Development Tax Credit

Lower your corporate taxes and improve your ability to innovate.

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Optimize your corporate tax strategy with the R&D credit

Innovation fuels progress, but bringing new ideas to market requires extensive research and development. There are tax credits out there to encourage American companies to invest time and capital into R&D (and reward those who are already doing so).

At HITO, we help qualified American companies claim the R&D credit and create optimized corporate tax strategies that enable future growth. Book a free consultation today to discover if you qualify and discuss your options.

How the R&D Credit Works

The R&D tax credit is a government initiative that encourages companies to innovate and improve their products and services. This credit offsets some of the risks associated with experimentation and is intended to increase the availability of new products and ideas throughout the marketplace. Instead of contributing via taxation, businesses are contributing through innovation.

Primary Advantages

In addition to the societal benefit, companies that qualify for this credit get to reduce their tax liability while improving their ability to innovate. Essentially, you save on taxes and investing the proceeds into your R&D. This credit is often overlooked, but it is one of the most powerful tools at your disposal.

What Qualifies as R&D?

The R&D credit is only applicable to STEM/science-backed improvements, but you don’t need to staff a full lab to claim it. For tax credit purposes, R&D encompasses anything that involves developing or improving business components based on hard science. This includes new physical products, but it also covers computer software development, as well as research into new techniques, formulas, and processes.

Who Qualifies for the Credit?

Any American business developing or improving products based on new or proprietary technology or scientific research. The R&D credit is available at the federal and state level, with over 30 states offering a credit to offset state tax liability. Startup companies with no income tax liability can use the credit to offset payroll tax. To claim this credit, businesses must display a clearly documented process of experimentation.

Qualification Checklist

If your company invests in product development, software development, optimized manufacturing processes, and other improvements, there’s a good chance you qualify for state and/or federal R&D tax credit.

Fill out the form below to find out.

  • Have you devoted time and resources to creating new or innovative products?
  • Have you used hard science to optimize existing products?
  • Do you develop processes, patents, or prototypes?
  • Does your business develop computer software?
  • Have you hired designers, engineers, or scientists in the past year?

If you answered yes to one or more of the above, there’s a great chance you qualify –

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