Exploring Opportunities for Growth through Strategic Leverage of R&D Tax Credits

As the global economy recovers from the effects of the pandemic, businesses of all sizes are looking for ways to innovate and grow. One way to do this is through research and development (R&D), which can lead to new products, processes, and services that increase competitiveness and improve the bottom line. Luckily, businesses can receive tax credits for R&D expenses, making it more accessible to companies of all sizes.

What are R&D Tax Credits

The R&D tax credit was first introduced in the 1980s as a way to incentivize American companies to innovate and compete in the global marketplace. Since then, the credit has been expanded and improved, and today it is available to businesses of all sizes, in all industries. The credit can be used to offset federal income tax liability or to receive a refund for taxes paid in previous years.

To take advantage of R&D tax credits, businesses need to identify expenses that qualify for the credit, which can include wages paid to employees engaged in R&D, supplies and equipment used in R&D, and contract research expenses. While the rules for claiming R&D tax credits can be complex, an experienced accounting firm can provide guidance and help businesses maximize their credit.

Using Professional Advice

Many businesses don't realize they qualify for R&D tax credits or don't know how to claim them. That's where a firm like D'Alessio, Tocci & Pell comes in. We are associated with a team of experts who specialize in R&D tax credit claims, and work closely with our clients to identify eligible expenses and maximize their credit.

With the economy rebounding and competition heating up, businesses need to be proactive in their investments in R&D to stay ahead of the game. By leveraging R&D tax credits and working with an experienced accounting firm, businesses of all sizes can invest in innovation and drive growth in 2023 and beyond.