Determining if you are qualified for research & development tax credit

What does not qualify for research & development tax credit?

Research which is completed after a product or service has previously been commercially launched; research done after the production of a specific component; research done in order to replicate a prevailing component of the business; and reverse engineering, among others.

Determining expenses which qualify for tax credit

These expenditures which may be eligible for tax credit comprise the salaries you pay for employees conducting research in-house; the purchase of supplies that include tangible property (but not land); contracts for research done by a third party/parties; and other basic payments related to research.

The next step is determining the calculation of the credit you can anticipate to obtain. This step is more complicated and you may wish to seek advice from a specialised R&D tax specialist. Texas Tax Credit provides expertise to a wide range of industries and can help companies recognise the impact of their research and development activities, or if they are eligible. Contact us today if you want to learn more about the R&D tax credits.

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