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Washington does not offer a standalone state Research & Development (R&D) Tax Credit in 2025. The state's high-tech B&O credit expired on December 31, 2014, but businesses can claim the federal R&D credit under IRC §41 for qualifying activities performed in Washington. Alternative incentives include competitive grants from the Department of Commerce and targeted B&O credits for job creation in rural counties or manufacturing/R&D operations.
Washington does not offer a state R&D credit, but businesses can claim federal R&D credits for research in Washington. Strike Tax maximizes federal benefits.
Eligible activities must meet the IRS four-part test, such as developing cloud software or aerospace technologies involving technological uncertainty. Strike Tax verifies qualifying projects under federal guidelines.
Savings can reach up to 20% of qualified research expenses (QREs) above a base amount. Use Strike Tax’s R&D Credit Calculator for estimates.
Yes, startups with less than $5 million in gross receipts can offset up to $500,000 in FICA payroll taxes annually. Strike Tax specializes in startup claims.
Maintain detailed project plans, employee time logs, and expense records supporting QREs under IRS standards. Strike Tax ensures audit-ready documentation.
File IRS Form 6765 with your federal tax return, attaching supporting documentation for qualified activities. Strike Tax simplifies the process.
Tech, aerospace, and biotech industries often qualify due to high R&D spending and alignment with federal criteria. Strike Tax evaluates eligibility.
Strike Tax maximizes federal credits, ensures compliance with IRS rules, and provides expert support for Washington businesses exploring state alternatives.
Federal credits offset federal liability but do not directly reduce Washington B&O or sales tax; however, they can enhance cash flow for state compliance. Strike Tax aligns claims for maximum overall impact.
Visit IRS resources or consult Strike Tax for Washington-specific guidance on federal claims and complementary state incentives like rural job credits.