SPOTLIGHTS:

5 Common Myths About the

R&D Tax Credit

Abgi-us logo

Despite an overall increase in R&D tax credit claims by US businesses, many companies are still not reaping the full benefits of the RTC.

By far, the main reason for companies having some resistance to understanding how the R&D tax credit can benefit their business, is the idea that they are probably not eligible.

SO, IT’S TIME TO VENTURE FORWARD AND DISPEL SOME OF THOSE R&D TAX CREDIT MYTHS!

   1. You're not eligible for R&D tax credits unless you wear a white coat and work in a laboratory.

MYTH! Companies from multiple sectors can be eligible for R&D tax credits - from biotechnology (where they may wear lab coats) to manufacturing, software, food and agriculture, engineering, renewable energy and more. If you are working in a hard science and face technical uncertainty in how to do achieve a specific objective, you could very well be doing R&D.

   2. You can only claim for successful projects.

MYTH! You can claim R&D tax credits for any eligible R&D project whether there was a successful outcome or not. In fact, failure can be a good sign of eligibility - what can be more uncertain than a seemingly impossible project?

   3. You can only claim for your current financial year.

MYTH! You can make a retroactive claim for any open tax years if the statute of limitations has not passed. This means companies new to the tax credit can still go back and claim for older projects rather than missing out.

   4. Claiming R&D tax credits is hard.

MYTH! Ok, sort of a myth. It can be a complicated process that requires knowledge of your business operations (easy for you!) but also an in-depth knowledge of the R&D tax credit legislation and case law, US Treasury Regulations, and the ever-changing tax code (not so easy!). But you can cut out the difficult part by enlisting the help of an R&D tax credit expert who can take on the hard work and complications for you.

   5. All R&D tax credit experts are the same

MYTH! Ok, sort of a myth. It can be a complicated process that requires knowledge of your business operations (easy for you!) but also an in-depth knowledge of the R&D tax credit legislation and case law, US Treasury Regulations, and the ever-changing tax code (not so easy!). But you can cut out the difficult part by enlisting the help of an R&D tax credit expert who can take on the hard work and complications for you.

Speak to ABGi USA

    • ABGi USA is a leading R&D tax credit specialist, guiding companies through the complexities of submitting claims to CPAs, the Big 4, and the IRS
    • ABGI USA's team of legal and technical experts is equipped with legislative and technical background as well as years of industry experience. This combined expertise has resulted in an extremely high success rate in securing R&D tax credit for their clients. Since its inception over 30 years ago, ABGi USA has realised $1 billion in benefits for their clients.

For a free R&D tax credit consultation and analysis of the potential returns you might expect, contact the ABGi USA team by phone: (832) 495-4555 or by email: contact-usa@abgi-group.com

spotlight 1

August 2019

Contact

Have a question? We’re happy to help!