Who Qualifies?
The R&D Tax Credit applies to all qualifying businesses, from start-ups through SMBs to major corporations.
Companies that develop, improve, or design products, software, formulas, techniques, or processes will likely qualify.
Which Activities Qualify?
To qualify your activity must pass all 4:
- Permitted Purpose: R&D activities must attempt to improve the performance, reliability, functionality, or quality of the new or existing product or service.
- Elimination of Uncertainty: Your business must show that it has made a significant technical contribution to the development or improvement of the product or service. Aesthetic changes would not qualify.
- Process of Experimentation: Your company must use modeling, simulation, or systematic trial and error during experimentation.
- Technological in Nature: R&D must rely on hard sciences such as biology, computer science, engineering, physics, or chemistry.
