The R&D tax credit is a valuable incentive provided by the government to encourage businesses to invest in research and development activities. It is a tax break that rewards companies for their innovation and technological advancements. Understanding the R&D tax credit is important to make sure you claim what you’re entitled to.
So, how does the R&D tax credit work? Essentially, it allows eligible businesses to claim a tax credit against their qualified research expenses. These expenses can include wages, supplies, and even contract research costs. By claiming the credit, businesses can reduce their overall tax liability, freeing up funds that can be reinvested back into their R&D efforts.
