The Research Tax Credit is a general business tax credit for companies that incur qualifying expenses. The tax credit, which was originally introduced by Congress in 1981, is intended to provide tax relief to companies that develop new or improved products and processes. In addition to the federal tax credit, about 40 states have their own R&D tax credit initiative.
Eligible industries include:
|Agriculture||Cosmetics and Skincare||Food Manufacturing||Plastics & Rubber|
|Automotive||Digital Imaging||Industrial Machinery||Precast Concrete|
|Biotechnology||Distribution & Logistics||Injection Molding||Printing|
|Chemical Engineering||Electronics||Medical Devices||Robotics|
|Clothing & Apparel||Energy and Gas||Metal Fabrication||Software|
and many more.
Federal and state credits can amount to as much as 20% of the costs incurred developing new or improved products and manufacturing processes.
To qualify for the Research Tax Credit, a business must: