The U.S. is a global leader in chemical production. According to the EPA, as of 2019 there were more than 3,400 chemical manufacturing facilities in the U.S. In 2017, the industry had $765 billion in sales and invested almost $100 billion in research and development (R&D). Costs associated with new formula creation, production processes, scale-up procedures, and other innovations can be recouped through the R&D Tax Credit.
Employee wages, raw materials and supplies, cloud computing, and third-party contractor costs associated with R&D 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:
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Use our R&D Tax Calculator to estimate your potential benefit, and partner with Strike to claim your tax benefits with no up-front costs. Contact one of our experts today.
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Benefits for the R&D Tax Credit vary from state to state. Get an accurate estimate of your potential state tax credit!