R & D Tax Credit: Substantial Cash Benefit Opportunity
Going into business can be very risky. This can be especially precarious when conducting business in the scientific or medical fields. There can be huge research and development investments in these businesses with no guarantee of a usable product from the work that is done. The cost can prevent companies from even getting off the ground or staying afloat in the competitive industries of medicine, technology and science. Companies in Texas, whether they be in Austin, Dallas, Fort Worth, Houston or San Antonio, are entitled to tax credits on research and development activities that can help to mitigate some of the costs and risks of these ventures.
It Saves Companies Money on Wages
Employee compensation is one of the biggest expenditures for many companies. Of course, conducting research and development requires employees. Companies can claim a portion of the salaries that they pay to employees working in the capacity of research and development. This may even apply to subcontractors who are hired to work on the project. These tax credits save companies a large amount of money.
It Saves Companies Money on Materials
Another major expense for companies involved in research and development involves materials and equipment. Sometimes, this can be prohibitively expensive for some companies without the aid of the tax credits available for them. Companies are entitled to claim tax write-offs for the materials and equipment that is used in their research and development ventures.
It Helps Young Start-Up Companies
New, small, start-up businesses are responsible for the increases in new jobs in Texas and in the United States each year. These companies are the major beneficiaries of the research and development credits that are available. If these companies are not assisted financially in the first few years of their operation, while the business is still fragile, they may not succeed, and these companies may be able to provide extremely valuable research that could be of huge significance to society as a whole. It is imperative that these businesses also take advantage of these tax credits to make their business more profitable and increase their chance of staying competitive in the market place.
Research and development is essential to the economy. With the decrease in the amount of manufacturing jobs available in the United States, the country needs to stay competitive in the areas of medical, scientific, and technological research and development. Research and development tax credits to assist companies in their efforts in this area, and they stimulate this sector of the economy by giving benefits to companies. It does this by reducing some of the risk involved. These tax credits give companies back a portion of the capital they invest in wages, materials, and start up costs. If your business has been engaged in research and development activities, make sure you take advantage of these opportunities to claim the cash benefits. Contact Texas R&D Tax Credit Solutions today to discuss your eligibility for claiming these tax credits.