R&D TAX CREDIT: SOUTH DAKOTA
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 VALUE
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, including South Dakota, 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.
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“ICS Tax has been terrific to work with. They help us identify R&D projects, qualify expenditures, prepare necessary support, and achieve significant tax credits year after year. They ask the right questions that draw out the information they need, and they translate all that into data for the tax returns. We have confidence in their results.” –Dave Moffatt, President Moffatt Products, Inc. Watertown, South Dakota |
HOW WE HELP SOUTH DAKOTA TAXPAYERS
Through our South Dakota Office in Sioux Falls, ICS Tax can prepare all necessary documentation to support the credit, calculate the amount of the credit, and draft necessary compliance. In the event of an IRS audit, we can help support your credit.