Research & Development Tax Credits
Any taxpayer that has developed new or improved products or processes should consider a Research and Development Tax Credit (R&D credit). In any economic environment, having cash available is critical to a business’s success, and recent developments have made R&D credits readily accessible to companies. Many states have created R&D credits of their own, in addition to the federal credit that can significantly enhance a taxpayer’s R&D credit incentives.
We are a dedicated R&D tax credit team that has the experience, proper analysis, and documentation in withstanding IRS inquiries that enable us to focus on providing our clients with comprehensive R&D tax credit studies. Our objective is to customize your tax approach to help achieve results that meet your business needs.
Weathering The Pandemic With R&d And Orphan Drug Tax Credits
With the constant discussions surrounding how to weather the COVID-19 storm, more technology, and life sciences companies should be evaluating their ability to take advantage of the Credit for Increasing Research Activities (R&D tax credit) to potentially realize substantial cash tax savings. In addition, many life sciences companies that are focused on developing products in accordance with the Orphan Drug designation may be able to take advantage of the Orphan Drug Credit (ODC).
Companies that have qualifying activities for the ODC may also qualify for the R&D tax credit, but both credits cannot be claimed for the same expense. The ODC generally provides a greater benefit compared to the R&D tax credit. We can help evaluate qualified costs to enhance the utilization of either credit.
- Although COVID-19 hasn’t directly altered the R&D tax credit nor the ODC, there are examples of why now is an opportune time to pursue these credits:
- May result in immediate cash savings to improve liquidity.
- Technology and life sciences companies may have an increase in their employees’ capacity to assist in pursuing these value-driving incentives.