Research & Development Tax Credit
Promote innovation across your business and get rewarded for doing so.
Optimize your tax strategy and reap the rewards of the R&D tax credit
Innovation is essential to a company’s growth. Whether it’s bringing new products to market or improving upon current services and solutions, research and development is key to staying a going concern and succeeding in a competitive market.
To reward efforts that promote innovation, companies are eligible for tax credits that can help minimize taxes.
At HITO, we collaborate with qualified companies who invest time and capital into innovation to claim the of R&D tax credit, as part of an optimized tax strategy that evolves as the company grows. Schedule your complimentary consultation to determine your eligibility and tax options available for your firm.
Introducing the R&D Tax Credit
The R&D credit is a tax benefit that provides companies savings for performing activities related to the development, design or improvement of products, processes, formulas or software. This credit provides much needed funds to hire more employees, expand facilities, etc. to support company growth.
Primary Advantages
This tax credit encourages companies to innovate and make better products for the community. It also helps companies minimize their tax liability, while supporting research and experimentation. Savings can also be reinvested into the company to improve cash flow and manage operations more effectively. This is a tax benefit that is often overlooked; however, it is a powerful tool that should be leveraged by every eligible company.
Qualified Research Activities
For tax credit purposes, R&D includes anything that involves developing or improving business components based in the hard sciences, such as physics, engineering, computer science or chemistry.This includes new physical products, but it also covers computer software development, as well as research into new techniques, formulas and processes.
Eligibility Requirements
Any business developing or improving products based on proprietary or new technology to the company or scientific research is eligible to the tax credit.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.. with If you answered yes to one of the questions above, there’s a high probability that you qualify for the R&D tax credit. Fill out the following form to receive a complimentary evaluation.