How much can I expect to get from the R&D tax credit?

In our previous blog, we went over the different types of qualified research expenses that go into the R&D tax credit calculation. While these are just a few of the inputs that go into a complicated formula, how much can you expect to get in R&D tax credits? A reasonable back of the envelop estimate is anywhere between 6% to 11% of the sum of your qualified research expenses (primarily driven by wages, supplies, and contractors). There are two methods of calculating the R&D tax credit: the Regular Credit calculation and the Alternative Simplified Credit calculation. Each method has a different formula, but they both use qualified research expenses as an input. The formula that is ultimately used depends on … Read More