This article explains how system integrators can qualify for the R&D tax credit by documenting and claiming
innovative activities like custom software development, system integration, network infrastructure, and
cybersecurity.
By Samantha Wenden.
As a system integrator, you’re constantly pushing the boundaries of technology, developing innovative solutions to complex problems. Did you know that your innovative work could qualify for significant tax benefits through the Research and Development (R&D) tax credit?
WHAT QUALIFIES AS R&D FOR SYSTEM INTEGRATORS?
To be eligible for the R&D tax credit, your activities must involve technological uncertainty. For system integrators, this often includes, but is not limited to:
• Developing Custom Software Solutions:
Creating unique software applications to meet specific client needs.
• Integrating Diverse Systems:
Overcoming technical challenges to seamlessly integrate hardware and software from various vendors.
• Designing and Implementing Network Infrastructure:
Building robust and secure network solutions.
• Developing Cybersecurity Strategies:
Protecting sensitive data and systems from cyber threats
WHY SHOULD YOU CLAIM THE R&D TAX
CREDIT?
• Significant Tax Savings:
The R&D tax credit can provide substantial tax benefits, freeing up funds for future innovation.
• Recognition of Innovation:
Claiming the credit acknowledges the value of your innovative work and encourages further research and development.
• Competitive Advantage: Investing in R&D can give you a competitive edge, allowing you to offer cutting-edge solutions to your clients.
HOW TO MAXIMIZE YOUR R&D TAX CREDIT:
1. Document Your Work: Keep detailed records of your R&D activities, including project timelines, technical challenges, and solutions.
2. Consult with a Professional: EPSA USA can help you identify eligible activities and optimize your claim.
3. Stay Updated on Regulations: R&D tax credit rules can change, so being and staying informed is crucial. Join one of our upcoming webinars to learn more! We have an R&D for Software Webinar happening in December and a CPE credit R&D Webinar in early January. To stay up to date on how to register- check out our events page.
By understanding the R&D tax credit and actively pursuing eligible activities, system integrators can unlock significant tax savings and fuel future innovation
Engaging with EPSA USA, which has long-standing expertise helping firms with credits and incentives, can ensure proper documentation, optimized savings, and streamline the claiming process alongside your CPA firms.
To request an R&D assessment, please contact Samantha Wenden, Senior R&D Consultant, EPSA USA [email protected] / (830) 708-7711.