The R&D Tax Credit is one of the most lucrative incentives available to taxpayers and provides a permanent offset to tax liabilities. This credit is an activity-based credit – meaning that if a taxpayer is performing specific types of activities, the costs incurred to perform those activities go into a separate tax credit calculation.
As it relates to the R&D Tax Credit, Cherry Bekaert’s Tax Credits & Incentives practice is primarily focused on helping companies identify and document qualifying R&D costs.
Types of investment and the four-part test to determination qualification
How to properly document support for R&D activities, which may qualify as these types of investments
Real-life examples of qualified R&D investments
IRS ASC 730 directive
If you have any questions specific to your business needs, Cherry Bekaert’s Tax Credits & Incentives Advisory team is available to discuss your situation with you.
If you haven’t already, catch up on other podcasts covering the R&D topic: