R&D Tax Credit
R&D (Research and Development) tax credits are government incentives to support businesses in their research and development efforts. Enacted in 1981 under the Economic Recovery Tax Act, these credits offer financial benefits, such as a dollar-for-dollar reduction to a taxpayer’s tax liability, as a way of recognizing and rewarding companies that invest in innovative activities.
1981
Enacted under the Economic Recovery Tax Act
Dollar-for-dollar
Reduction of your tax liability
Federal & state
Credits available in most states
Eligible R&D activities can include developing new products, refining processes, or advancing technologies.
Businesses involved in these innovative endeavors may experience reduced tax liabilities, providing them with additional resources for further research and development initiatives.
- 01
Developing new products
Designing, prototyping and testing a product that did not exist in your line before.
- 02
Refining processes
Improving how something is made, tested, assembled or delivered.
- 03
Advancing technologies
Building or materially improving software, tooling, formulas or techniques.
Standard businesses that typically qualify for R&D can include but are not limited to the below:
- Architecture
- Manufacturing
- Agriculture
- Food and Beverage
- Engineering firms
- Dental Labs
- Software Development
- Aerospace
- Construction
- Electrical Contracting
- Mechanical Contracting
Up to $500,000
applied against payroll taxes
Qualified Small Businesses can also claim an R&D tax credit of up to $500,000 applied against their payroll taxes as elected in Section D of Form 6765. This enhancement was intended to make the R&D credit more beneficial for small businesses and startups.
Eligible organizations include those that have:
- Under $5 million in gross receipts in the current year
- No more than 5 years of generating gross receipts, including the current year
- Made the election in Section D of Form 6765
What it is like to work with us
Six commitments that shape every engagement, from the first eligibility call through to the filed claim.
Trust
We are committed to developing strong lasting relationships through commitment, communication, and honesty.
Expertise
At Jorns & Associates our dedicated team of professionals have years of experience helping businesses navigate the ever-changing tax code and regulatory environment.
Community
We are committed to making a difference in every community we work in and our team has logged tens of thousands of hours and invested millions of dollars into local and national charitable organizations.
Ethics
Jorns & Associates is committed to conducting business the right way.
Efficiency
Our team specializes at helping companies operate at optimal capacity. At Jorns & Associates we streamline every step of the accounting process to ensure filings are done on time, every time.
Transparency
Many professional service companies surprise clients with completely unexpected hourly charges or hidden fees. At Jorns & Associates, we pride ourselves on our transparency when it comes to the fees associated with our services.
Find out what your R&D work is worth.
We identify qualifying activities, substantiate the claim and file it with your return.