Can I Claim R&D Tax Credits in Indiana?
Yes, you can claim R&D tax credits in Indiana . The state offers a research and development tax credit program known as the Indiana Research Expense Tax Credit.
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The Research and Development Tax Credit (R&D) is a tax credit available to businesses of all sizes that engage in research and development activities in the United States. This tax credit is not limited to scientists and research labs, but is applicable to a diverse range of businesses and industries. The R&D tax credit encourages research and development in the US. It is increasingly popular among companies, and in 2015, the PATH Act made it permanent and added benefits for startups.
What are the Potential Benefits of the R&D Tax Credit?
Qualified companies can achieve substantial 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?
There was a prevalent misbelief that R&D tax credits only favored individuals who wore lab coats or were involved in creating best-in-class products. However, it's R&D credits have a more expansive and inclusive nature than most people comprehend.
Did you know that companies of all sizes and industries can qualify for Research and Development (R&D) Tax Credits? It's true! However, many companies are missing out on this opportunity simply because they are not aware of their eligibility. Don't be one of them! There are thousands of dollars in federal and state R&D tax credits just waiting to be claimed. Let us help you take advantage of what you deserve.
The activities eligible for the R&D tax credit are the very activities fueling your business's growth.
- 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 Indiana 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 claim up to 10% of their qualified expenses as a federal R&D tax credit. For instance, a software developer, engineer, or lab technician earning $100,000 annually may save $10,000 in taxes.
Qualifying research expenses in your company usually cover employee compensation, materials, and contracted services. To justify these expenses, you can provide different types of documentation such as payroll records, financial records indicating research-related supply or contract expenses, and vendor invoices.