Frequently Asked Questions about the R&D Tax Credit

As we head into tax season, we wanted to kick of 2020 by answering some common questions we get about the R&D tax credit. Let’s dive into it! The R&D (research and development) tax credit is a federal (and some states) tax incentive, that provides cash benefits to companies conducting research and development in the United States. A tax credit is a dollar-for-dollar reduction of a taxpayer’s income tax. It is NOT a tax deduction! All types of business can claim the R&D tax credit including sole proprietorships, partnerships, S-corps and C-corps. Credit that are claimed but not monetized are carried back one year and carried forward for twenty years. Historically, the R&D tax credit benefitted large, profitable organizations that … Read More