Why More Industries Benefit From the Interpretation of the R&D Tax Credit Guidelines

There was a time where many Texas companies considered it too much hard work to bother applying for the R&D tax credits, thinking in all likelihood that they would not benefit from the incentive. In recent times, this has become less of an issue and more and more companies in the state of Texas from all areas of industry have been receiving this valuable tax benefit.

It Applies to Multiple Industries:

As time has gone on, the definitions and guidelines defining what qualifies for the R& D tax credit have been broadened. Or at least the interpretations of these rules have been broadened. This is largely due to the IRS having to deal with a number of cases in court where the interpretations have been questioned. Simplification and clarification of the rules has been a necessity. This means that companies within industry in general should now be applying for and receiving the tax breaks. Companies within the following industries have all found that projects they have completed have been eligible to receive the tax breaks that the R & D incentive provides:

  • Manufacturing
  • Oil and Gas
  • Games, Media and Software
  • Energy/Utilities
  • Healthcare
  • Food Processing

What Activities Count as R&D?

The IRS guidelines are very specific about the activities which are considered to be R & D. The grey areas which have caused conflict in the past have over time been resolved and it is now possible to say with more clarity exactly what is covered by the rules. This means that the tax benefits are now even more widely available to companies who need them. So if your company spends time and money on activities such as the development and design of new products, improvement of existing products or processes integral to your workflow, development and implementation of new software or design of prototypes, then you are likely to qualify.

Accessing R & D Tax Credits:

Employing a team with the knowledge and expertise to ensure that the right tax credits are received by your company is a must. The detailed documentation that the IRS requires in respect to R & D claims and the subsequent audit process and ongoing maintenance that is required by many companies means that an in-depth knowledge of the requirements, legislation and associated procedures is needed by any team dealing with your claims. Having this support will ensure that the right level of benefits is obtained, and sustained, for your company.

Check with Texas R&D Tax Credit Solutions today to see if you are eligible for additional tax credits. Complete the contact form and get advice from the professionals.