R&D Basics
When businesses claim expenses for research and development, this benefit is considered what
What is a tax credit?
Part of R&D requires meeting this test.
What is the four part test?
This is what R&D stands for
What is Research & Development?
Companies may use the R&D Tax Credit to either get this back or lower future tax bills.
What is cash back?
The government rewards businesses for doing research, testing, and problem-solving by giving them money back on their taxes.
What is the Research & Development (R&D) Tax Credit?
One part of the Four-Part Test requires that research is done to resolve this about how to develop or improve something.
What is uncertainty?
This type of tax liability can sometimes be reduced by the R&D credit in addition to income taxes, especially for qualified small businesses.
What is payroll tax liability?
Even startups that may not yet owe federal income taxes can use the R&D Tax Credit to offset this.
What are payroll taxes?
This type of expense—such as wages, supplies, and certain contract research costs—can often be included when calculating the R&D Tax Credit.
What are qualified research expenses (QREs)?
This is the main reason businesses pursue the R&D Tax Credit: it reduces taxes and frees up money to reinvest in their operations.
What is saving money to fuel growth?