The U.S. government created the R&D tax credit in 1981 to incentivize American based companies to create innovative technology, instead of losing intellectual property to other nations.
Many companies were not eligible to receive a current benefit until the PATH act was passed in 2015. And once passed, not a lot of companies heard about it. Even companies that did know about it failed to pursue it, due to complexity and time constraints. We offer a solution that makes it easier and less time consuming.
No! The R&D tax credit was created by the U.S. government to give funds back to companies who spend money on technology-based innovation.
Simply put, the R&D tax credit creates money that goes back in your company’s pocket to fuel further innovation and growth. Estimate your R&D credit with our quick calculator.
Typically 7-10% of qualified expenditures, the credit can be used to offset:
Income taxes if you are in a taxable position.
Alternative Minimum Tax (AMT) if you have less than $50 million in average revenue for the 3 preceding years from the tax year, and you owe AMT in the current year.
Employer portion of social security taxes up to $250,000 each fiscal year, allowing qualified small businesses to receive the benefit regardless of profitability.
With AIA, it takes a fraction of the time to pursue the R&D tax credit compared to traditional R&D studies. To learn more about our technology-enabled process, please visit Our Solution.
No. Companies in many different industries qualify. To learn more please visit The Opportunity.
You receive money every year you are eligible.
No. The purpose of GAAP is to make sure financial reporting is consistent and transparent. The R&D tax credit rewards companies for innovation.
If your company has wage or other expenses related to the development of new or improved products, you may have qualifying R&D activities.
We aim to maximize the intent of the government by building awareness of the R&D tax credit, especially amongst entrepreneurs, startups, and established companies looking to grow by investing in technology-based innovation.