“Pivot” may have been one of the most used terms in 2020 as organizations quickly adjusted to the disruption of the COVID-19 pandemic. Impact on supply chains and physical work environments brought changes to the way of doing things for organizations across the board. To the extent your organization undertook activities that were new or different from what you had done before, you may find you are eligible for an often-generous federal tax credit program for research and experimentation.
Topics: Michael Corrente, research and development, R&D, research and development tax credit, research and experimentation, R&E
The research and development (R&D) tax credit is one of the most widely applicable tax credits available to businesses. It provides an incentive for most companies to bring new or improved products to the marketplace or to improve production processes. R&D tax credits may also be applied retroactively, which could result in cash refunds from previously filed tax returns. Smaller businesses benefit as well. Companies with gross receipts that are less than $50 million can use the credit to offset alternative minimum tax (AMT) liability, and qualifying start-up companies can use the credit to offset payroll tax.
Topics: Carl Giardino, research and development, Taxes, R&D, research and development tax credit, tax credit