A business may be eligible to receive a research tax credit if the research and development expenditures are greater than the base amount determined for those purposes.
R&D Tax Credit Calculation
This research credit is equal to 20% of the amount that exceeds the initial sum dedicated for research expenses (including grants and contributions) paid for research conducted by universities.
Qualifying Costs For R&D Expenditures
It is very important to have the calculations for R&D expenditures determined by an experienced CPA. The Research and Development expenditures include wages of personnel involved in research activities, supervising or supporting development efforts. The cost of equipment used does not qualify for the credit computation. However, developing software for internal use may qualify for R&D credit.
Seeking professional advice in determining qualifying expenditures for your business research tax credit? Call us now at 713-774-4467
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