Small Business Week Alert: Startups Can Claim R&D Tax Credits

Small Business Week Alert: Startups Can Claim R&D Tax Credits

Posted by Jeffrey Feingold on 05.04.22

Small Business Week, which runs now through May 7, is an excellent time for Tax Point Advisors to remind small businesses of an outstanding opportunity to claim valuable tax credits for eligible research and development (R&D) activities.

Recent changes in the law make certain small businesses with gross receipts of less than $5 million eligible to take the R&D credit against their payroll tax liability for the first time when filing 2016 federal income tax returns. In the past, they could only take the credits against their income tax liability, which was not useful for businesses with little or no income.

For those businesses that already filed, it’s not too late! For specifics on the qualifications for startup businesses, please see our blog: Small Business R&D Credits and Payroll Taxes.

For information on which forms to use, please see the IRS article: Startups Can Choose New Option for Claiming Research Credit.

Find Out if Your Activities Qualify

The R&D tax credit can be a lucrative incentive for businesses. And 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 federal and state 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, read our e-book: The Business Owner's Guide to R&D Tax Credits.

You may also contact us at (800) 260-4138, or please leave us a message below. 

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