What the Research and Development Tax Credit Means for Your Texas Business
The economic outlook for Texas business is much brighter than almost any other state in the U.S. The passing of House Bill 800 reduces the R&D tax burden on your expenditures, and will help you to be more competitive in your industry niche.
This bill promises to increase job growth in the state, bring more innovative products to the market, and provide you, the business owner, with tax credits that you can use to reinvest in your company.
What Does Your Company Do?
As you begin to learn more about research and development tax credits, you must reflect upon the activities that take place in your organization. Ask yourself the following questions:
- Does your company engage in engineering and new product design?
- Are you involved in patent efforts and the development of prototypes for your products?
- Do you participate in laboratory or certification testing to ascertain if products meet industry criteria and standards?
These are all qualifying activities that allow you to claim R&D tax credits on your corporate tax returns.
What Qualifying Costs Do You Have?
It’s always a good idea to do some research on your own before you contact a team of professionals to assist you with filing your credit requests. It’s important to know the qualifying costs that you spend as a corporation before you proceed with your tax returns. At this step you should consider:
- The salaries and wages of your employees. Do any of them include participation, supervision, or direct support of research?
- The supply or materials cost that your company incurs. Are these materials used in the research and development process?
- Do you include on your payroll contractors and other technical experts who assist you with the research process?
These costs will qualify your company to claim R&D tax credits for your Texas-based business if the work was performed in the state of Texas and you can provide documentation as evidence of your claim.
Move Forward with Experienced Professionals
After you have examined the activities and business operations of your company and taken a look at the Texas state government policy that applies to your business transactions, it’s time to consult with a team of experienced professionals that can advise you every step of the way.
Our team at Texas R&D Tax Credit Solutions operates from a mantra of honesty, integrity, transparency, and confidence. We are well-trained, insightful about the tried and trusted strategies that we have in place, and establish effective communications with your executive team. We pride ourselves on taking complex governmental issues and making them simple for you to understand with our deliberate and dedicated guidance.
With our steady hand of experience hand at the helm of your corporate R&D tax credit initiative, you’re sure to receive the credits that you deserve in a timely and just fashion.