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:
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!