Research and Development Tax Credits Studies
Let our talented team of tax professionals at PriceKubecka in Addison, Texas, find new ways to help you save money on your taxes through research and development (R&D) tax credit studies. This incentive exists within the tax code to encourage innovation and experimentation that leads to the creation of new and improved products, or technologies.
Does my organization qualify for R&D tax credits?
Ultimately, this depends on a variety of guidelines within the tax code. R&D tax credits ultimately benefit those who engage in qualified research activities (QRAs) by providing tax credit for the capital spent during the research process, otherwise known as qualified research expenditures (QREs). To determine whether an activity qualifies as a QRA, there is a four-part test the activity must pass. This test outlines that the research activity must:
Involve eliminating uncertainty concerning developing, or the improvement of, a product
Be useful in developing a new or improved business component
Discover information related to technological advancement
Be experimental in nature and conducted for a purpose that is permitted