View this complimentary archived BKD webinar for a review of the R&D tax credit aimed at tax and accounting professionals. The presentation includes a discussion of the credit, how to calculate and document it and how to prepare for potential changes in the future. Learn more
Mitigate Your Tax Liability by Taking Advantage of R&D Credits
If your company has spent time and other resources developing new or improved existing products and business processes, you may qualify for the research and development (R&D) tax credit. Only a fraction of U.S. companies qualifying for the R&D tax credit claim it. BKD’s R&D Tax Credit team can help your company identify qualified research activity, quantify associated costs, properly document research expenses and calculate the credit.
Any taxpayer engaged in what the government considers qualified research activity can qualify for the credit, though companies in the following industries are more likely to qualify:
- Software Development
- Tool and Die
- Biotech and Pharmaceutical
- Architecture and Engineering
- Oil and Gas Exploration
- Brewery and Distillery
The federal R&D credit is a dollar-for-dollar credit against federal tax. It can be taken during the year earned or, in some cases, carried forward to future tax years or back to prior tax years. Companies also can claim credits from prior years and request a refund. In addition to the federal R&D credit, many states also offer credits for research activity.
BKD’s R&D Tax Credit Services
BKD’s R&D Tax Credit Services professionals are entirely dedicated to this service, bringing to bear backgrounds in engineering, tax and economics. Our team has completed studies for large multinational corporations and small family-owned businesses. Their experience includes successfully defending research credit claims for clients before the IRS at the examination and appeals levels. In addition to our own clients, BKD’s R&D Tax Credit Services team assists the clients of other CPA firms through our Strategic Alliance Program.
A BKD feasibility analysis can help you determine whether credits may be available for your company through a R&D study. Contact one of our professionals for a no-fee estimate of available credits.