Businesses that engage in the design, development, or improvement of products, processes, techniques, formulas, or software can regularly benefit from R&D credits, resulting in substantial savings that can be reinvested into the business.
Federal R&D credits alone can exceed 10% of the annual R&D costs, and when combined with state-level credits applicable to taxpayers operating in those states, the savings can be even higher.
Over 30 States throughout the U.S. contain provisions that permit companies to claim tax credits or refunds.
Each state’s R&D credit offering is distinct, with varying rates, eligibility criteria, and other factors. Furthermore, the legislation governing state R&D tax credits can change unexpectedly, without prior notice to taxpayers, making it imperative to seek assistance from an R&D tax credit professional.
For example, the State of Virginia permits a singular application per tax year that requires specific reporting requirements. By contrast, the State of California permits up to four years of tax amendments (contrasted with the Federal amending period of three years) in addition to multiple calculation methodologies to maximize your benefit.
Businesses can determine if a state R&D credit is still available and ascertain if there have been any alterations to the specific requirements of the state’s credit program.
At KC&A, we assess any and all State-specific programs to ensure your credit claims are maximized and properly calculated.
Contact KC&A today for your free State-specific R&D credit assessment and evaluation
