Business firms in the U.S. are constantly needing to remain agile in order to keep up with the latest trends and business needs.
One solution for them is to take advantage of a government incentive that was enacted to reward American businesses for innovating—an activity that many businesses do nearly every day.
The Research and Development Tax Credit (R&D Credit), which is claimed by U.S. companies collectively at a rate of approximately $10 billion per year, was enacted in the 1980s to encourage American businesses to innovate in order to help our country’s economy thrive.
The credit has been expanded throughout the years through legislative and judicial activity, including the most recent change to the credit: the elimination of the corporate Alternative Minimum Tax (AMT) and the curbing of the number of pass-throughs subject to individual AMT.
This loosening of AMT restrictions has removed the most significant hurdle that prevented companies from using the credit, and opened the gates for businesses across the country to lower their tax liability.
A basic requirement of the R&D Credit is that the business is designing or improving a process or product.
Many businesses think they do not qualify, but now they can find out in seconds via