Is Your Organization Taking Advantage of R&D Tax Credit?
In this day and age, few progressive entrepreneurs and managers with a long term vision for their organization would deny the ever growing importance of research and development if you are to not only move forward but to even stay afloat in the ever increasingly competitive world. New technology and new methodology springing up on a daily basis means that no one with hopes of success, even with the best product and team out there, can rely only on the old and time proven approaches to their day to day operations. Research and development budgets are thus becoming key to the life of businesses and organizations, and yet the proper documentation of R&D activities is not always in place, which, in fact, costs millions of dollars every year. This lost money is due to the hundreds of organizations not making use of the Research and Development tax credits available from the government – sadly, many of those who do a lot of R&D don’t even know that the tax credits exist and that they may be more than eligible for them.
What kinds of tax credits are there?
At Texas R&D Tax Credit Solutions, we take pride in working with various businesses and organizations on determining what R&D credits they may be eligible for and assisting them in applying for these credits without it being a drain on resources. The three basic credits at play here are called Traditional, Start-Up, and Alternative Simplified, and the variation is mostly based on the year of incorporation, the amount of research and development activities you have been involved in, and just how well you have been documenting these processes. Determining your eligibility for R&D tax credit is difficult to do in an automated fashion, as no two businesses or organizations are the same, and the best way to go about it would be to get in touch with one of our professional and experienced advisors. If you look closely at the components of the R&D tax credit system, it makes much more sense.
What kind of documentation is required?
While government regulations and requirements for documenting the research and development work change on a regular basis, there are some basic points that should be kept in mind. The R&D work should be substantiated, and the need for it needs to be explained. Competition research plays a pivotal role, while the experiments and hypotheses should be concrete, practical, recorded, verifiable and reasonable. In the end, the results you obtain should be analyzable and usable for the development of your organization or the field as a whole. Come to think of it, if you are engaging in real and substantial research and development work throughout the years, and the results of this work helps you understand your customers’ needs better, why shouldn’t you be rewarded for it? At Texas R&D Tax Credit Solutions, our team make sure that your reward gets to you and you get the additional support to keep moving in the right direction.