Internal Revenue Code §41 known as the Research & Experimentation Tax Credit or the R&D Tax Credit is a general business tax credit for companies that are incurring R&D expenses in the United States. The R&D Tax Credit was originally introduced in the Economic Recovery Tax Act of 1981.
Every year, the R&D credit yields billions of dollars in federal and state benefits to companies engaged in qualifying activities. Thousands of companies take advantage of the credit across several industries.
Some of the common industries that qualify for the R&D tax credit include, but are not limited to:
If your company is involved in any of the following activities, you may be eligible to claim the credit:
Potential benefits of the R&D tax credit can include: