Strategic Tax Solutions

Can I Use The R&D Tax Credit?

At Strategic Tax Solutions, we simplify the process of accessing R&D Tax Credit funds, making it cost-effective, straightforward, and risk-free. We offer a free initial review of your tax returns and provide a tax savings estimate for your potential R&D Tax Credit before we even begin our services. If your business has created a new product or process, or improved an existing one, you may be eligible for R&D Tax Credits. These four criteria help determine whether the activities qualify for the R&D Tax Credit under U.S. tax law. By ensuring that your business’s activities meet these criteria, you can potentially benefit from significant tax savings related to your research and development efforts.

Do You Qualify?

1. Develop or Improve a Business Component

The activity must be related to the development or improvement of a business component. This can include products, processes, software, techniques, formulas, inventions, or other similar items that are used in the business. The business component must be new or improved, not just routine work or general operations.

2. Eliminate Uncertainty

1. Develop or Improve a Business Component

The activity must seek to eliminate technical uncertainty. This means the taxpayer must be attempting to overcome technical challenges or questions about the capability, method, or design of a product or process. This uncertainty must be identified at the beginning or during the course of the project.

3. Process of Experimentation

The taxpayer must engage in a process of experimentation to resolve the uncertainty. This could involve evaluating alternatives, testing prototypes, or using trial and error to develop solutions. Essentially, the company must be performing activities where there is a systematic approach to experimentation to solve a technical problem.

4. Technological in Nature

3. Process of Experimentation

The activities must be technological in nature, relying on principles of hard sciences such as engineering, computer science, biological sciences, chemistry, or physics. The work cannot be based on social sciences, arts, or other non-technical fields.