There are numerous applications for electronics that benefit the military, retail, aviation, medical, and consumer goods industries. Designing products that improve communication, entertainment, and point-of-sale transactions require significant investments in research and development (R&D). If your electronics company is working on a novel device or improving on existing technology, it may qualify for the R&D tax credit. The R&D Tax Credit can offset the costs of innovation, and deliver needed capital to reinvest in your vision.
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 your potential state tax credit!