It can be difficult for businesses to identify what they can claim towards the R&D Tax Credit. Our consultants at EPSA work with businesses and CPAs to calculate an R&D Tax Credit that can be used in several different ways to optimize cash flow for a business. Here are the top 3 ways companies can use the R&D Tax Credit.
1: You Can Use it to Offset Income Tax
The R&D Tax Credit is a dollar-for-dollar reduction in your tax liability. This results in instant tax savings for your company and/or shareholders and partners!
2: Offset Payroll Tax with your Research and Development Tax Credit
If your business is new, you may be able to use the R&D credit to offset a portion of your payroll tax. This can be incredibly valuable for companies that are not paying income tax, but still have significant expenses related to payroll.
3: You Can Carry the R&D Tax Credit as an Asset on your Balance Sheet
For companies that do not meet the payroll tax offset requirements but are still not paying tax, they can still calculate an R&D Tax Credit and carry the credits forward to offset future tax liability. The great news about it the credit is that it carries forward for up to 20 years!
Any questions? Request an assessment now for your business!
Our consultants at EPSA work every day with businesses to help them claim and optimize their R&D Tax Credit. Request an assessment now to assess your eligibility for the R&D Tax Credit. And don’t miss out on any news about the R&D Tax Credit by reviewing our news section!