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Research & Development Tax Credit


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Research & Development Tax Credit Overview


Since 1985, ABGi has provided our clients with the highest level of service for the Research and Development Tax Credit. Our “Business Component Approach” to working on the R&D tax credit produces a thorough analysis of qualified business activities and provides our clients with superior documentation.


ABGi USA has over 30 years of experience working with American businesses to reduce their tax liability by maximizing tax incentives, like the R&D tax credit, that stimulate business growth, innovation, and advancement.



The following facts were posted in regards to actual R&D credits claimed over the past few years:


    • $11.6 Billion in R&D Expenditures were reported on individual and corporate tax returns
    • Manufacturing was actually the largest sector to claim, but only 6,219 of 15,873 Manufacturers actually took the credit (39%)
    • Businesses of $250 Million of sales or more account for 14% of all claims made, but this 14% accounts for 84% of the total credits claimed
    • Companies with less than $50 Million in sales account for 72% of all filers, but this represents only 11% of the credits claimed



R&D Tax Credit overview:


The Research & Development tax credit was created in 1981 as part of the Economic Recovery Act, designed to fuel American Business and innovation. The R&D tax credit can result in a dollar-for-dollar reduction in a company’s Federal Income tax liability. This general business tax credit is under the IRS Code Section 41, “Credit for Increasing Research Activities.”


Here are some other fast facts regarding the R & D Tax Credit:


    • Taxpayers can claim Federal R&D Tax Credits retroactively and receive cash back by filing amended returns for the past three years
    • Approximately 36 states have their own R&D Tax Credit programs to reduce state tax liability
    • Certain companies can utilize the credit against all taxes paid, including the Alternative Minimum Tax (AMT)
    • Incentivizes innovation in the USA by ensuring the retention of highly skilled personnel in the USA
    • Any R&D Tax Credit not used can be carried forward up to 20 years

Contact us today to receive your free consultation and see if your business qualifies for the R & D Tax Credit incentive.