Software and technology firms are performing the type of activities that Congress had in mind when enacting the R&D credit more than 40 years ago. However, in our experience, companies in this industry that are already claiming the credit on their own or through their CPA, are only including the activities of the software programming itself. While programming and coding is qualified, there are numerous other activities that qualify as well!
These activities include:
- Network design and development
- New or improved firmware designs
- Coding, programming, testing
- Cloud computing development
- Technology design (e.g., image processing, artificial intelligence, or speech recognition)
- Prototyping of hardware
- Design and development of unique database architectures
Because the R&D credit includes more than just software development, a wide range of industries and sectors qualify, including, but not limited to, the following:
- Network engineering;
- Application development;
- Information technology; and
- Software as a Service (SaaS).
This is just a brief overview of the types of activities and industries that qualify for the R&D credit. If your company, or a company you work with, performs the activities listed above, it likely qualifies for the R&D credit. Reach out to us today to request an assessment of your eligibility for the R&D credit and we’ll get back to you within a few hours!