When it comes to growing business, it’s no secret that superior products and services, coupled with elite customer support are the backbone for any company. These elements combined lead to the ultimate client experience transforming each customer into a walking, talking billboard for your business. This formula is not an easy one to create, and it certainly takes time and money to tweak and enhance the blueprint before it becomes perfected and begins to dispense profit.
Like most businesses, hard work and dedication have taken the smallest companies to the greatest heights, but it hasn’t been without trial and error. This constant examination warrants spending capital that may or may not be readily available. If you’re lucky, you have a team of investors behind you handing you blank checks at any given time, though this is usually not the case for small and medium sized businesses. Luckily our government provides us with opportunities to help small and midsized businesses fulfill their intended purposes.
The Research and Development (R&D) Tax Credit can be a lifeline for a company, and an injection of cash can help grow a company’s staff or purchase new equipment for production. For those unfamiliar with the R&D Tax Credit, it is a government-sponsored benefit that provides tax incentives for companies conducting R&D in the U.S. These economic incentives were implemented to stimulate research and development in industries of all sizes, to encourage companies to work together, and to transform the economic landscape. Since the R&D methodology of building and maintaining a business is an iterative and constantly evolving process, many businesses qualify for this powerful credit. Unfortunately, many businesses either don’t realize, or self-censor their ability to procure this effective tax credit.
“The R&D Tax Credit is a powerful tool for American businesses to utilize in strengthening their business efforts”, Kit Bond, former Missouri Senator, said. “We are all aware of the old adage which states, ‘it costs money to make money’ “. The R&D Tax Credit ensures that a company can be rewarded for the efforts made to build their business. Owning a business is all about finding what works and you usually don’t get it right the first time. The R&D Tax Credit transcends the boundaries of multiple industries and is not limited to the examples above. A myriad of industries have benefited from this amazing tax credit and have been able to hire more staff, purchase more office equipment and/or machinery, and replenish their bottom line – which is every company’s ultimate goal. These tax credits have revitalized and invigorated companies in ways that have restored a newfound ability to continue advancing in their intended direction.
We’re sure every business owner can recall a period where product testing or experimentation of a service took place. Can you remember a time? Contact your MarksNelson professional today or email firstname.lastname@example.org to assess what tax incentives may be available to you!