Can startups that are/were in losses benefit from the credit?

In addition, prior-year federal R&D Tax Credits can be carried back one year and forward up to 20 years. Once the company reaches profitability, those credits will be available for use. Each state is different when it comes to carryforward and carryback rules, but most follow the general federal guidelines.

To be considered a QSB, a company must meet these requirements:

• Less than $5 million in current-year gross receipts;
• Five or fewer years of gross receipts; and,
• Have qualified research expenses.