5 Common Myths About the R&D Tax Credit

5 Common Myths About the R&D Tax Credit

August 9, 2019

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

The main reason most companies don’t realize that the R&D Tax Credit can benefit their business, is the misperception that their company doesn’t qualify.





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 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 (ABGi USA of course!) who can take on the hard work for you.



5. All R&D Tax Credit experts are the same.


MYTH! This is absolutely a myth! What sets ABGi USA apart is the fact that our business component approach makes the process much easier on our clients. ABGi USA almost always finds more credits than other providers due to the extensive knowledge and industry experience of our team. The Senior Project Managers you work with today, will be working with you year after year. We don’t have massive turnover like our competitors and this consistency develops institutional knowledge that makes recurring studies even easier on our clients.



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 employs a large team of scientists, engineers, and lawyers across all sectors. If you have eligibility, no one is better equipped to find it for you.
  • Since our inception over 35 years ago, ABGi USA has realized $1 billion in benefits for our clients.