Electrical engineering and design firms create a variety of products to support the military, health, and commercial industries. These can involve Bluetooth functionality, sensors, WiFi, data storage, and many others. Solving technical challenges and delivering products to clients requires significant investments in research and development (R&D). Firms can recoup some of these costs through the R&D Tax Credit.
Employee wages, raw materials and supplies, and third-party contractor costs associated with R&D activities are considered 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!