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Business Owners: The R&D Tax Credit Could Provide You with the Cash You Need Now

April 27, 2020

There’s no sugar coating it - we are in the midst of a global pandemic and likely recession. Times are tough for business owners and the catch phrase “cash is king” has never rung so true. If you are in one of the eligible industries and haven’t already applied for the Research & Development (R&D) Tax Credit, now is the time to look closely at it as a source of much needed cash flow (not only for this year but potentially for the prior 3 years).

Our clients have saved over $3 million on this credit since 2016.

Did you know?

  • The credit is available at both a federal and state level and when combined, the benefit can be up to 20% of every dollar spent on qualifying research.
  • You can go back three years to claim past credits that were missed!

What could this mean for you?

If you are a business owner that has been performing qualified research but have not used the credits on previous tax returns an R&D tax credit study that includes multiple years (e.g. tax years potentially including 2016, 2017, 2018, and 2019) could result in a significant refund of overpaid taxes and much needed relief for your business.

Which industries qualify?

Most often, industries that qualify for the R&D tax credit include:

  • Manufacturing
  • Software and Hardware Development
  • Biotechnology, Pharmaceutical, Medical Device
  • Contract Manufacturing and Labs
  • Engineering (mechanical, electrical, civil)
  • Food and Beverage Processors
  • Companies with E-Commerce sites
  • Technology

With the assistance of a third party engineering partner Davis & Hodgdon Associates CPAs can analyze your business expenses to determine if you qualify for the R&D Tax Credit. Call our office in Rutland (802.775.7132) or Williston (802.878.1963) Vermont to receive a preliminary analysis of how the R&D Tax Credit can benefit your business at no cost.

For more information about this potentially lucrative tax credit opportunity refer to our white paper: https://www.dh-cpa.com/client_media/files/pdf/2019-RandD_revised.pdf.