Innovation is the lifeblood of every economy, without it there would be no progress. A world without innovation is a world where mankind has not developed past our hunter-gatherer heritage. There would be no agriculture, electricity, airplanes, computers, or stem cell treatments.
A remarkable aspect of innovation is that it can be found in every single industrial sector. And within any given industry, you would be hard pressed to find a successful company that does not innovate, regardless of size or scale. Chances are you work at an innovative business. Did you know that your company can receive a tax benefit for that innovation? Isn’t it high time you explored your eligibility for the R&D Tax Credit?
1944 saw the establishment of the first R&D tax relief benefit in the world and in 1981, the US introduced its own version of the credit. That temporary credit was renewed every year (except one) and in the 2015 PATH Act the credit was made permanent – finally! Not only that, but the legislation was updated to help small businesses and start-ups to realize a benefit, even if they were in a loss making position. As the economic benefit of the research credit has grown throughout the world. The US, like many other countries has seen the credit become more lucrative, year after year.
Obviously the next step is to understand what you need to do to receive the benefit. Essentially, if you are trying to improve what you do as a business (something new or improving something you already do), you encounter technical challenges along the way, and the fundamental activities rely on a field of science or technology –there is a high likelihood that you can benefit like many others.
If you think there is a possibility that you undertake activities that meet this description, it is definitely worth a discussion with a research credit specialist. Who wants to pay more than their fair share of tax? Your neighbor is benefiting from the credit, shouldn’t you?