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Connect with us to find out how R&D tax credits can boost your organization’s bottom line.
Even though the federal R&D credit is consistent across the country, states offer a variety of programs for businesses engaging in research and development. While Alabama doesn't have a statute specific to R&D, the Alabama Jobs Act provides incentives to qualified businesses for approved projects that create new jobs in the state, including those conducting space research.
Taxpayers that qualify for the Alabama R&D credit need to plan ahead and receive approval from the Alabama Department of Commerce before they can claim the credit. Learn more about Alabama's Investment Credit here.
R&D Tax Credit Available:
Yes
Eligible Entities:
C-Corporation, S-Corporations, LLCs, Partnerships
Deadline for Tax Filing:
Online Application
Data Required to Compute Credit:
Qualified Capital Investment approved with a State Project Agreement
What Information is needed?
Various — See Alabama's R&D Tax Credit Law Website.
Credit Carryforward:
The annual credit is not refundable, but any unused credit associated with the annual credit can be carried forward for up to 5 years.
To get an estimate of the potential value of your unclaimed R&D Tax Credits, try out our credit calculator.
Download our R&D Tax Credit Calculator for Android to see how much you can receive from your qualified R&D tax credit expenses.
No, Alabama does not offer a state-specific R&D tax credit. However, businesses can claim the federal R&D tax credit for qualified research expenses (QREs) incurred in Alabama. Contact Strike Tax to maximize your savings.
Eligible activities include developing or improving products, processes, or software involving technical uncertainty, such as designing manufacturing processes or innovative software. Strike Tax can identify qualifying projects.
Yes, startups with less than $5 million in gross receipts and no gross receipts for over five years can offset payroll taxes with federal R&D credits. Strike Tax can guide eligibility.
Maintain detailed records like project plans, employee time logs, and expense receipts for wages, supplies, and contract research costs. Strike Tax ensures audit-ready documentation.
File IRS Form 6765 with your federal tax return, ensuring QREs meet the IRS’s four-part test (technological in nature, uncertainty, experimentation, business component). Strike Tax streamlines the process.
Savings depend on QREs, with credits up to 20% of expenses above a base amount. Use Strike Tax’s R&D Credit Calculator for a personalized estimate.
Businesses of all sizes in industries like manufacturing, software, or biotech conducting qualified research can claim credits. Strike Tax can assess your eligibility.
Strike Tax specializes in maximizing federal R&D credits with expert documentation and compliance support, ensuring Alabama businesses get the most from their claims.
