Invented in 2008, blockchain began as a payments ledger for cryptocurrency giant Bitcoin. The open-source technology gives companies the capability to securely track any type of data set within numerous applications. Blockchain is a decentralized technology for making permanent, time-stamped digital records, and technology companies are researching numerous applications to real-world situations. Processing and storing large amounts of data and improving upon existing tracking systems require extensive research and development (R&D). If your blockchain company develops, tests, or secures platforms, you may be able to take advantage of the R&D Tax Credit to recoup costs spent on innovation.
Employee wages, supplies, cloud computer rental, 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 what your potential state tax credit!