The Vermont Technology Alliance presented a Lunch & Learn session on November 16 on how Vermont tech and other businesses and start-ups can qualify for federal R&D tax credits, saving tens of thousands of dollars in taxes.
The Federal Research and Development (R&D) Tax Credit was introduced in 1981, and is intended to incentivize companies to develop new and improved products or processes. Since then it has evolved, and the credit now rewards companies of all sizes — not just large businesses — that innovate in a variety of ways.
Businesses that do software development or invest in new technologies are ideal candidates for claiming these unique tax credits. They can be used to offset income tax liabilities, or they can be used to offset payroll taxes by start-up businesses that are not paying income taxes yet. It’s not too late for those who qualify to claim the credit for this tax season if the process required for the necessary calculations begins before year-end.
Presenters were Bret Hodgdon of Davis and Hodgdon Associates, and David Fleischer of Business Resource Services. Bret and Dave have worked with a number of Vermont software development, tech, manufacturing and other companies to help them save thousands of dollars in tax credits, and provided insight into how businesses can take advantage of this opportunity.
For more information about the R&D Tax credit please click here.
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 plan a tax strategy session today.