Do Your Business Activities Qualify for R&D Tax Credits?

Do Your Business Activities Qualify for R&D Tax Credits?

Posted by Jeffrey Feingold on 12.01.16

Think about it—only one out of every 20 eligible businesses takes advantage of the research and development (R&D) tax credit. That’s because many business owners don’t realize that their industry is ripe with eligible activities. While many industries have qualifying activities, an R&D tax credit study can help you determine which activities qualify.


In general, if your company has invested money, time and resources in activities that help improve a process, product, technique or formula, or contribute to the invention of a new process or product, you stand a good chance of qualifying for valuable R&D credits. Here are some common qualified research activities:

  • Developing or designing new products, processes or formulas
  • Developing a new manufacturing process
  • Developing prototypes or modes
  • Developing internal software solutions
  • Developing or improving software technologies
  • Testing new materials or concepts
  • Streamlining internal processes
  • Maintaining laboratory equipment
  • Documenting research activities
  • Designing or evaluating product alternatives
  • Certification testing
  • Environmental testing

Read our FREE guide: The Business Owner's Guide to R&D Tax Credits

There are also certain expenses that qualify for R&D tax credits. These include wages related to performing a qualified service, supplies directly linked to qualified research activities and contract research for payments to third-party contractors that meet the same qualification requirements for wages.

All activities and expenses require strict documentation. A qualified tax credit professional will provide all the specific information you will need to claim any eligible credits. Again, the R&D tax credit study will provide you with a comprehensive analysis of your company’s R&D activities, help you document your activities and defend tax credit claims in the event of an audit by federal or state taxing authorities.

Now that federal R&D tax credits have been made permanent, there is no better time to reinvest in your business by getting credit for your qualified R&D activities. Tax Point Advisors, a leading provider of R&D tax credit and specialty tax services, has written The Business Owner's Guide to R&D Tax Credits to put all the information you need to know about accessing R&D credits at your fingertips. By reading this e-book, we hope you gain a clear understanding of the qualifying process that eventually leads you to take your first steps toward claiming the credit you have earned.

Find Out if Your Activities Qualify

The R&D tax credit can be a lucrative incentive for innovative businesses. Given the new permanent nature of the federal tax credit, now is the time to consider whether activities performed by your company qualify for major cash-saving tax credit opportunities.

Request a free assessment to determine qualifying R&D tax credit eligibility.

Tax Point Advisors, a firm with expertise in working with small and midsize companies, works with businesses that may qualify for R&D tax benefits. For more information, call us at 800-260-4138 or please leave us a message below.

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