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State R&D Tax Credits

 

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How Much Can Businesses Save?

Many states offer their own R&D tax credits in addition to the federal program, with credit rates typically ranging from 3% to 15% of qualified research expenses. These state-level incentives vary by location and can significantly increase your total benefit when R&D is performed within specific states.

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How Does The R&D Tax Credit Work?

Research and development activities encompass more than just work performed in a laboratory or research associated with new-to-the-world discoveries and products. The government rewards technical approaches to problem-solving and doesn’t require a ground-breaking solution that’s new to the industry, just new to the company.

The IRS definition of “research” is much broader and must only satisfy the Four-Part Test. To qualify, the activity must:

  • Intend to resolve technological uncertainty
  • Rely on principles of hard sciences
  • Aim to create a new or improved business component
  • Constitute a process of experimentation

The expertise you need to properly leverage lucrative tax credits and incentives.

Reach out to a tax consultant to learn how CTI powers your business for success.

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