Nevada R&D Tax Credits

Nevada does not offer a state-specific R&D tax credit, but businesses can claim the federal R&D tax credit for qualified research expenses incurred in Nevada. Contact Strike Tax to maximize your savings.

Qualifying activities must be technological, aimed at developing or improving a business component, eliminate uncertainty, and involve experimentation. Examples include software development or process improvements in industries like tech or mining. Strike Tax can identify qualifying projects.

Yes, startups can claim the federal R&D credit, including a payroll tax offset of up to $500,000 annually for up to five years if gross receipts are under $5 million and no receipts for more than five years. Strike Tax can guide eligibility.

Maintain contemporaneous records such as project descriptions, time tracking, wage allocations, supply costs, and contract research agreements. For 2025, the IRS has introduced new Sections E and G on Form 6765. Section E is generally required, while Section G (detailed business component information) is optional for tax years beginning in 2025 but will become mandatory for most taxpayers starting with tax years beginning in 2026, subject to limited exceptions. Strike Tax ensures audit-ready documentation.

Attach Form 6765 to your federal tax return. In Nevada, no state income tax, so no adjustment needed. Strike Tax streamlines the process.

Nevada has no state R&D credit, so no state-level changes apply. Federally, the IRS has kept Section G of Form 6765 optional for tax year 2025 and extended the transition period for research credit refund claims, including the 45-day window to perfect incomplete refund claims, through January 10, 2027. These changes provide additional flexibility for businesses, including qualified small businesses using the payroll tax offset.

Federal R&D credits can be carried forward for up to 20 years or back one year to offset prior tax liabilities, offering long-term value for Nevada businesses with fluctuating income.

The IRS requires contemporaneous documentation, including project timelines, employee time logs, prototypes, and expense receipts tied to the four-part test for qualified research. Nevada businesses should retain records for at least three years post-filing.

Yes, expenses outside Nevada can qualify for the federal R&D credit if they meet IRC §41 criteria, as long as the research is performed in the United States or its territories. Activities conducted outside the United States and its possessions do not generate federal R&D credits.

With no Nevada income tax, the federal R&D credit directly offsets federal income tax liability without state conformity issues. It can also apply to payroll taxes for eligible startups, enhancing cash flow in Nevada's business-friendly environment.