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How can you tell if your business is a good candidate for R&D tax credits?
Activities - a business that routinely or periodically engages in:
- Developing new products or formulas
- Functionally enhancing existing products or formulas
- Improving production/fabrication processes (e.g., improving through-put, decreasing labor, increasing yield, improving quality)
- Developing plans to manufacture engineered/designed products
- Developing software applications
- Designing & constructing tooling, molds,
dies, & fixtures
- Prototyping
Profitability - must have
some level of taxable income during some
(not all ) of the years of the study or
anticipating income (from operations or a
sale of business assets) in future years.
Time Period - prior 3 years,
current year & all future years.
Entity Types - your business' entity classification (i.e., S-corp, C-corp, LLC) does not matter.
Taxes - taxpayer must have
some level of regular tax liability (above
minimum tax) during prior 3 years, current
year or in future years.
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