Research & Experimentation (R&D) Tax Credits & Studies
For a number of years, the increasing research and experimentation tax credits have been a good way for businesses to save taxes and also increase the flow of research funding into our communities. The federal R&D tax credit is a general business credit that is awarded for increasing research activities. Many companies mistakenly think that these credits are for large high-tech or biotechnology companies, and as a result, many leave money on the table by not exploring them further to see if they qualify.
The laws surrounding the R&D tax credit can be cumbersome, which is why many companies shy away from claiming it. HBL CPAs has experienced staff who can evaluate your company’s needs and make a recommendation on whether or not you may be eligible for this generous tax credit. Companies from all different industries can qualify for this credit, including those who make their own products, and/or invest in processes that enable them to be more globally competitive.
Oftentimes, the process includes a preliminary evaluation of whether your firm may be eligible for the credit, and at that point, a decision is made on whether or not to conduct a study. We contract with the most premier R&D study firm in the country, and they perform an in-depth review of your business’s activities to find all the activities that qualify for R&D treatment, and subsequently, maximize the credit you can receive.
R&D credits are also available in many states, including Arizona.