Video games have become increasingly more realistic and complex over the years, and appeal to a wide consumer demographic. According to Statista, 66% of the general population in the U.S. were gamers in 2018. Building an immersive game from scratch that can succeed in this competitive industry takes considerable time and energy. As users demand online gaming for peer-to-peer play, developers face challenges to streamline data requirements while enriching the graphics. Companies who invest in gaming creation and technologies may be eligible for the Research and Development (R&D) Tax Credit. The federal and state tax savings enable companies to reinvest in innovation, and could give your company the competitive edge it needs.
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!