Businesses who invest in new products or processes, or making improvements to existing products and processes, can benefit from the Research and Development (R&D) tax credit. 

The R&D tax incentive has been permanently extended and funding from the credit can potentially be retroactively applied. 

Criteria for the R&D Tax Credit 
The R&D tax credit incentivizes businesses who undertake specific types of research and development related activities, including:

• Development of new, improved or more reliable products, processes and techniques
• Development or enhancement of software applications
• Development of prototypes or models
• Design of tools, jigs, molds, fixtures and dies
• Automation and/or streamlining of internal processes

R&D Tax Credit Four-Part Test
In order to qualify for the R&D tax credit, activities must meet the requirements of a four-part test.

1. Permitted purpose. Develop a new or improve an existing product, process or software.
2. Eliminate uncertainty. Discover information to eliminate uncertainty concerning capability, methodology, or appropriateness of design.
3. Process of experimentation. Engage in activities that involve a process of experimentation or evaluating design alternatives.
4. Technological in nature. Discover information that fundamentally relies on principles of hard sciences.

Partner with Eide Bailly to Maximize Your Tax Savings
The potential to utilize the research and development tax incentive is immense. The confusion surrounding whether your activities qualify prevents many from claiming it. Working closely with a trusted advisor who specializes in the R&D tax credit will help streamline the process and increase your cash flow.

Eide Bailly’s R&D tax team spends time to understand your organization’s unique situation and how you can maximize the full potential of the R&D tax incentives. Our team brings thorough knowledge of tax laws and regulations and strives to help our clients qualify and claim the R&D tax credit.

Ready to start increasing your cash flow? 
Partner with a trusted firm to help you benefit from the R&D Tax Credit.