R&D Tax Credit Services

Most, if not all, businesses will meet the qualification criteria, so don’t leave this money on the table.
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R&D Tax Credits are a Federal (and many states) tax incentive put in place to promote domestic innovation and production. This tax incentive provides organizations with an additional dollar-for-dollar tax reduction for innovation, design, process improvement, adoption of new business components, and many other common day-to-day activities.

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Did you know that there are significant federal and state tax credits available for a range of R&D activities? These credits, often in excess of six figures can provide you with critical cash to reinvest in your business.

Our experienced team of tax professionals can help you identify and implement the most valuable combination of federal and state R&D tax credits to help maximize your returns. For most companies, the credit can be worth 7-10% on qualified research expenses.

But which credits are best for your particular R&D activities? That’s where we come in. Take our FREE ASSESSMENT and find out what you could be eligible for, today.

Industries We Work With

We also proudly collaborate with Industry Associations & CPA Firms!

How SMBs Can Take Advantage of R&D Tax Credits

Many SMBs overlook the opportunities available through R&D tax credits. While the number one reason for this lack of action is simply not knowing about these benefits, fear of the complex application process was also a significant deterrent.

The current tax code and Research and Development Tax Credits offer business owners tons of opportunities to save money and are too often overlooked. With many businesses suffering due to the COVID-19 pandemic, it is crucial more than ever to look at your tax strategy and claim your share.

Our partner Ryan Foley explains why now is the right time to revisit your tax strategy and take advantage of R&D Tax Credits.

Any business that is creating new or improved products, processes, or technology can potentially take advantage of the R&D credit; however, only 1 in 20 eligible companies take advantage of it.

Learn what the qualifying activities for R&D Tax Credits in 2020 are and how Cunningham & Associates can help.

Qualifying R&D Activities

R&D Tax Credits are a Federal (and many states) tax incentive put in place to promote domestic innovation and production. This tax incentive provides organizations with an additional dollar-for-dollar tax reduction for innovation, design, process improvement, adoption of new business components, and many other common day-to-day activities.

The IRS utilizes a “Four-Part Test” to define qualified research activities.

Part I: Permitted Purpose

The activity must relate to new or improved business components in one or more of the following areas:

  • Function
  • Performance
  • Reliability
  • Quality

The term “business component” means any product, process, computer software, technique, formula, or invention, which is to be held for sale, lease, or license, or used by the taxpayer in a trade or business of the taxpayer.

SPECIAL RULE FOR PRODUCTION PROCESSES. –Any plant process, machinery, or technique for commercial production of a business component shall be treated as a separate business component (and not as part of the business component being produced).

Part II: Technological in Nature

The activity performed must fundamentally rely on the principles of:

  • Physical science
  • Biological science
  • Computer science
  • Engineering

Part III: Sense of Uncertainty

The activity must be intended to discover information to eliminate uncertainty concerning the capability or method for developing or improving a product or process, or the appropriateness of the product design.

Part IV: Process of Experimentation

Substantially all the activities must be elements of a process of experimentation involving:

  • Evaluation of alternatives
  • Confirmation of hypothesis through trial and error
  • Testing and/or modeling
  • Refining or discarding of hypotheses

There are many misconceptions about what qualifies as R&D. You don’t need to be in a lab coat, and activities don’t need to revolutionize the industry; they just need to attempt to evolve your business. Since the definition has been updated more companies qualify than ever before.

Ryan P. Foley

Partner, Cunningham & Associates

Comprehensive Guide to R&D Tax Credits

rd tax credit guide

1 in 20 eligible companies take advantage of R&D Tax Credits. This FREE guide contains an executive summary of the tax credit and industry-specific lists of common qualifying activities so you can take advantage of available opportunities.

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