R&D TAX CREDIT: RHODE ISLAND
The Research and Development (R&D) tax credit is a Federal tax incentive that rewards taxpayers for increasing investment in U.S.-based research activities. The R&D tax credit is available to businesses that uncover new, improved or technologically advanced products, processes, principles, methodologies or materials. In addition to “revolutionary” activities, the credit may also be available if the company has performed “evolutionary” activities such as investing time, money and resources toward improving its products and processes.
The R&D tax credit is primarily a wage-based credit, which is worth approximately 6.5% of qualified R&D activities. Thus, a taxpayer with $1M of qualified wages could receive a $65,000 benefit. Many states also offer R&D tax credit that can greatly enhance the value of the study. Further, the credit can often be claimed for prior tax years.
HOW WE HELP RHODE ISLAND TAXPAYERS
Through our Northeast Practice Office, ICS Tax can prepare all necessary documentation to support the credit, calculate both the Federal and the Rhode Island credit amount, and draft necessary compliance. In the event of an IRS audit, we can help support your credit.