The state of Massachusetts offers refundable research and development (R&D) tax credit under The Economic Development Act, St. 2014, c. 287, revised the research credit provisions in G.L. c. 63, § 38M. It is effective for tax years on or after January 2015.
In 2018, the calculation method was revised a bit that now offers organizations an option of choosing to have the research credit...Read More
As the name implies, Generally Accepted Accounting Principles (GAAP) are nothing but a set of accounting standards, procedures, and principles that all public organizations in the United States must follow for the preparation of financial statements. It is closely related to R&D, and GAAP research and development is our topic of discussion today.
The Financial Accounting Standards Board...Read More
The research and development (R&D) tax credit is a great way for businesses to open up their pockets with more cash. Unfortunately, many people have misconceptions about the R&D tax credit eligibility. They think that only certain industries like engineering, software, or manufacturing can benefit from it and ultimately miss out on significant cash savings.
When it comes to...Read More
The federal research and development (R&D) tax credit is a great incentive for companies who want to invest in research. The US government offers this reward through taxes so that businesses can keep them competitive on innovation within their industry. But how do you claim it? Well…the answer lies in Form 8974 and Form 6765.
The tax credit results in the dollar-to-dollar reduction for...Read More
Qualifying for Research and Development Tax Credit
The United States government provides billions of dollars to companies each year for designing, developing, or improving new/existing processes, formulas, technologies, or products through the R&D tax credit program. The qualified businesses can use this credit to offset up to $250,000 annually in social security taxes. Simply put, this is...Read More
The American Jobs Creation Act of 2004 (AJCA) is a great way for small businesses to stay afloat and create jobs. This legislation includes many helpful tax credits, such as Section 199 or domestic manufacturing tax credit, which allows domestic manufacturing and production businesses to reduce the federal tax rate from 35% to 31.85%. This law is also known as domestic production activities...Read More
The South Carolina research and development (R&D) tax credit is an incentive for businesses. You can use it to offset tax liabilities. It is available for businesses that perform specific research activities. Born in 1981, the R&D tax credit allows up to 13% of the credit for eligible expenses. Individuals, limited liability companies, sole proprietors, partnerships, S corporations,...Read More
Pennsylvania is a state that has been investing in its economy because the industries here are some of America’s most innovative. Businesses count on PA R&D tax credit to improve their products and processes. This credit program contributes positively towards the global market through increased innovation.
The economy of this state is a modern, technological-driven one. With an...Read More
Manufacturing has always been an industry that’s driven innovations. And now, it can be even better thanks to research and development (R&D) tax credits. There are a lot of ways you can qualify for the R&D tax credit. You can benefit from manufacturing tax credits even if your company isn’t developing new products or processes.
If your company wants to develop or...Read More
As a business owner, you may wonder how to calculate the R&D tax credit. There are two calculation methods allowed for the federal Research & Development tax credit:
Regular Research Credit Method (RRC)Alternative Simplified Credit (ASC)
Depending on the situation, businesses can choose either of them to compute their research credit numbers. They can use that amount to offset...Read More