With the rise in mobile gaming, videoconferencing, and streaming, telecommunications companies are constantly innovating to stay competitive. As consumers require more bandwidth to transfer data, telephone (both wired and wireless) operators, satellite companies, cable companies, and internet service providers (ISPs) face numerous challenges to meet demand. This requires significant investments in research and development (R&D). If your company innovates with emerging technologies such as artificial intelligence (AI), solutions that increase wireless connectivity, or unique products or services, you may qualify for the R&D Tax Credit.
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:
- Implementing AI to improve the customer experience
- Improving speed and expansion of existing networks (e.g. 5G)
- Creating Internet of Things (IoT) products (e.g. managing vehicle fleets, smart cities)
- Improving network safety and fraud prevention
- Creating novel platforms for video, chat, or music
Do you have these job titles on your payroll, or do you hire third-party contractors to do these jobs?
- Data Scientists
- Electrical Engineers
- Network Systems Engineers
- Network Specialists
- Product Developers
- Telecom Project Managers
- Telecommute Solutions Architects