Virtual reality (VR) and augmented reality (AR) are booming industries with applications in e-sports, gaming, mobile apps, retail, and more. Developing immersive technology requires a significant investment of resources to produce high-quality services and experiences. If your company is improving or creating in the VR/AR space, it may be eligible to claim the Research and Development (R&D) Tax Credit. These credits result in dollar-for-dollar tax savings at both the federal and state levels, and can give your company additional capital to reinvest in the “next big thing.”
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!