Can I Claim R&D Tax Credits in Florida?
Yes, you can claim R&D tax credits in Florida. The state offers a research and development tax credit program known as the Research and Development Tax Credit for Florida Corporate Income Tax.
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The Research and Development Tax Credit (R&D) is available to all businesses conducting R&D in the United States, regardless of size. This tax credit applies to a variety of industries and companies beyond just scientists and research labs. The R&D tax credit exists to encourage research and development conducted in the United States. Its popularity among companies continues to grow each year. The Protecting Americans from Tax Hikes (PATH) Act, enacted in 2015, not only made the R&D tax credits permanent but also expanded its eligibility to include startups.
What are the Potential Benefits of the R&D Tax Credit?
Eligible companies can achieve significant cost savings through the utilization of R&D tax credits. These benefits include:
- Increasing Cash Flow
- Federal and State Dollar-for-Dollar Income Tax Reduction
- Claim Credits for Open Tax Years Going Back 3-4 Years
- Reducing Your Tax Rate
$1.6 BILLION
Who Can Claim the R&D Tax Credit?
It was once a common misconception that R&D tax credits were exclusively for individuals in lab coats or those inventing cutting-edge products. However, this is inaccurate, as the scope of R&D credit is much broader and far-reaching than many people realize.
Companies in various sectors and of all sizes meet the federal government's criteria for qualified innovation activities and can claim Research and Development (R&D) Tax Credits. Despite this, numerous companies remain unaware of their eligibility, resulting in missed opportunities to benefit from substantial federal and state R&D tax credits.
The activities that qualify for the R&D tax credit are the same ones driving growth in your business.
- Developed new products
- Improved existing products
- Developed software for internal or external use
- Improved manufacturing processes
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The activities that qualify for the Florida R&D tax credit are the same ones driving growth in your business.
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10,700
How Do I Claim the R&D Tax Credit?
Companies can potentially receive a federal R&D tax credit equivalent to 7-10% of their eligible expenses. Take, for instance, a software developer, engineer, or lab technician earning $100,000 annually, who may save up to $10,000 in taxes.
To support your company's research activities, eligible expenses usually consist of employee compensation, materials, and contracted services. You can provide various types of documentation to prove these qualified expenses, including payroll records, financial records indicating supply or contract research expenses, and vendor invoices.