Artificial intelligence (AI) has become more sophisticated over the last decade, spanning industries such as retail, finance, healthcare, and engineering. Research and development (R&D) play a critical role in AI advancement. You may be able to claim the R&D Tax Credit to offset costs if your business develops automation tools that improve workflow, data analysis, communication, user experience, or cloud storage solutions.
Employee wages, supplies, cloud computing expenses, and third-party contractor costs associated with research and development activities are considered qualified research expenses (QREs). Companies can receive refunds of up to 22% of total QREs through federal and state tax credits, depending on the state in which your business operates.
Examples of qualifying activities:
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
Benefits for the R&D Tax Credit vary from state to state. Get an accurate estimate of your potential state tax credit!