How and When to Claim R&D Tax Credits

If you are just starting a new business or have invested intensively in research and development in the past finance and tax cycle, you may be wondering what you can do to maximize on the appropriate and available R&D tax credits. At Texas R&D Tax Solutions, we have worked with many organizations and businesses in Texas throughout the years to provide information, advice and guidance when it comes to the research and development credits, how and when to claim them, and determining the best approach to dealing with them. An important first point that we always start our work with new clients with is the need to clarify that there is no such thing as “the R&D Tax Credit.” Instead, there is a multitude of federal level and state level credits in Texas, some of which will apply to a particular situation, while others would definitely not do so.

When were you incorporated?

One of the first criteria that divides the applicants for a Research and Development Tax Credit into groups would be R & D Tax Creditsthe date of incorporation. The fault line there runs through the midnight between the years 1983 and 1984. The incorporation date is also supplemented by whether the business had R&D expenses reported before 1989. For companies that do not appear to qualify for either Traditional or the Start-Up Credit (as the pre-1984 and post-1984 incorporated businesses are divided), there is also the Alternative Simplified Credit, which, as the name suggests, provides an escape route should the criteria be difficult to meet.

How to apply?

Because we are talking about both federal and state level tax credits and programs simultaneously, it is very important to know the procedures for applying for these credits and making sure that the information provided to the tax authorities at different levels is consistent, verifiable, accurate and complete. As every situation is different, and every business has its own needs and requirements and ways of doing their accounting and bookkeeping, we highly recommend that you get in touch with a member of our knowledgeable team at Texas R&D Tax Solutions for a consultation. Many factors need to be taken into account while applying for your research and development tax credits, and we would be happy to guide you through the process.

Why should you choose us?

We truly believe that we can provide our clients with the best available tax credit services in the state. Our numerous happy clients will testify to the fact that we take every case on an individual basis, avoid cookie cutter solutions, and really take time to listen and understand the needs and requirements of every customer. Having earned the highest level of certification and licensing in the business, we are proud to be the provider of choice for hundreds of businesses searching for a way to maximize their research and development tax credits. We look forward to helping you and your organization as well! Contact us today at Texas R&D Tax Solutions to ask any questions that you may have.