For Utah businesses in multiple industries looking to reduce tax liability.Contact Us
R&D tax credits, also known as the Research and Development credit, enable businesses to potentially reduce their federal income tax or franchise tax. Taxpayers might qualify for the credit if they paid for (or incurred) qualified research expenses.
Qualified Research Activities can include the below. As mentioned, all qualified activities must take place in the state of Utah.
Find out if you qualify for the Utah research credit.Contact Us
Properly claiming the R&D tax credit can be difficult without the right expertise - That’s where GOAT.tax comes in. Our R&D tax credit software identifies any qualified research expenses your company paid and qualified research activities to ensure you receive the largest refund possible.
These qualified expenses typically include employee compensation, contracted services, and materials. Typical data needed include payroll records, detailed financial records, vendor expenses, and gross receipts from the past 4 years.
All companies in Utah (regardless of industry, size, or revenue) that perform these qualified research activities must satisfy the following criteria of the IRS Four-Part Test as outlined in IRC §41(d):
In Utah, the carryover must be applied to the earliest tax year possible and the unused credit may be carried over until it is exhausted.
There are two primary methods for computing the Utah research tax credit, which includes the Regular Credit (RC) Method and the Alternative Simplified Credit (ASC) Method.
Taxpayers can choose which method they would like to have utilized for calculating their potential tax benefit, however, each method offers specific advantages and disadvantages. At Source Advisors, we can determine the best calculation method based on your situation.