Does your company invest in innovation and research and development (R&D)? Then you may want to consider the R&D tax credit.
Qualifying research expenses like wages, contractor expenses, and supplies can yield income tax savings of between 4 and 7 percent. Moreover, given the corporate tax rate reduction effective this year, the net benefit of the credit increases from 65 percent to 79 percent.
A new R&D payroll tax credit is also available to startups with under $5 million in current-year gross receipts and that have had gross receipts for no more than five years. This is part of an intent to increase the number of startups and small and mid-sized businesses that can benefit from the credit.