New product research and development can be a pretty intricate and costly process. We understand it’s a difficult decision to invest resources in an unproven product. Well, did you know Uncle Sam wants to see some good ol’ fashioned American innovation? Qualifying R&D expenses can be taken off your federal tax bill. There are currently 38 states which also offer a similar tax break for R&D expenses, including Indiana. These credits reward companies based on their attempt at designing or manufacturing a new product, not the project outcome.
Does your company:
- Employ degreed chemists, engineers, programmers or scientists?
- Develop or improve new products or processes?
- Build prototypes to test?
- Incur raw material costs during the product development/improvement process?
- Subcontract any engineering or testing functions?
Check with your favorite tax pro to take full advantage of the incentives available to your specific situation. Exploring these options could make a big difference in your R&D efforts and give you the confidence to tackle your next bold project. Partnering with Catalyst will help ensure you can quickly head to market with a successful product.