Every year, the R&D credit yields billions of dollars in federal and state benefits to companies engaged in qualifying research. Yet, many companies are unaware that their day-to- day operations could qualify for a dollar-for- dollar reduction of their income tax liability.

Under recently issued government regulations, more industries now qualify for the R&D Tax Credit than ever before. Plus, the R&D Tax Credit regulations allow eligible taxpayers to “look back” to all open tax years (typically three years plus the current year) for potential research credits that were never claimed.

The Research & Development (R&D) tax credit is for businesses of all sizes, not just major corporations with research labs, and many companies are surprised that they qualify. If you think you must have research labs with white-coated scientists to qualify, think again. Any company that designs, develops, or improves products, processes, techniques, formulas, inventions, or software may be eligible. In fact, if a company has simply invested time, money, and resources toward the advancement and improvement of its products and processes, it may qualify.