Company Expansion and Investment Influenced by R&D Tax Credits

According to a survey of corporate tax executives by BDO USA, the research and development tax credits play a big role when it comes to company investment and expansion decisions.

Two-thirds of large companies that participated in the survey are claiming the federal R&D tax credit. More than half (56%) of the large companies surveyed are taking advantage of the R&D tax credit on a state level as well as a federal level.

Three-quarters of companies that have plans to grow into new U.S. territories within the next three years stated tax credits, exemptions and reductions as having the greatest effect on the decision.

A large majority of the 35% of companies that didn’t claim the R&D credit, said this was due to the belief that they did not qualify. Industry leaders have found this to be the biggest misconception surrounding the R&D credit. The IRS’ definition of R&D is surprisingly broad and quite inclusive.

Contact a Texas R&D Tax Credit Solutions specialist for more information on the federal or state R&D tax credit.



Globe and paper