Services

Research and Development (R&D) Tax Credits

Helping You Determine Your Eligibility for R&D Tax Credits

In an effort to incentivize companies to remain competitive and continue technological advancements, the federal government created Research and Development (R&D) tax credits, also known as the Research and Experimentation (R&E) tax credit. Many state governments, including Arizona, created their own tax credit programs where certain activities receive tax credits. The credit encourages companies to increase their efforts and spending on research and development activities over time by reducing tax liabilities.

Frequently Asked Questions

What are qualifying R&D activities?

Some day-to-day operational activities may qualify for R&D. Examples of some qualifying activities include manufacturing products, developing new products or processes, improving existing products or processes, creating more reliable software or techniques, constructing prototypes or physical models for testing and evaluation purposes, and developing new technologies.

Who qualifies for R&D?

It is easier for companies to qualify for acceptable R&D activities. Any company, regardless of size or nature, that develops new or improved products or processes, may be eligible to receive R&D. In fact, many companies that qualify make products they do not design.

What are the benefits of R&D tax credits?
  • Immediate reduction of company and shareholder tax liability and improvement of company cash flow.
  • Creation of substantial and immediate cash by generating tax credits from a prior year’s R&D activities.
  • Reduction of future tax liabilities from continued use of the R&D tax credit.
  • Certain qualified, small start-ups can use the credit to offset a portion of their payroll taxes.

Examples of Qualifying Companies and Industries

Aerospace
Agriculture
Architectural Firms
Automotive (OEM and Suppliers)
Biosciences
Chemical
Computer Hardward
Electronics
Energy
Engineering
Fabrication
Foundries
Injection Molding
Manufacturing
Medical Devices
Mining
Nanotechnology
Packaging
Pharmaceuticals
Plastics
Robotics
Software
Telecommunications
Transportation
Who We Help

Industries

Need Guidance and Help?
If you need guidance, give us a call and we will be happy to discuss your business, particular situation, and appropriate service.