Can I Claim R&D Tax Credits in New Hampshire?
Yes, you can claim R&D tax credits in New Hampshire. The state offers a research and development tax credit program known as the Research and Development Tax Credit.
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The Research and Development Tax Credit (R&D) is a tax credit accessible to businesses of all sizes conducting research and development in the United States. This credit is not limited to scientists and research labs; it is applicable to a wide spectrum of businesses and industries. The R&D tax credit was established to encourage research and development efforts in the United States. Year after year, an increasing number of companies are utilizing this credit. Moreover, the Protecting Americans from Tax Hikes (PATH) Act of 2015 made the R&D tax credits permanent and expanded the eligibility to include startups.
What are the Potential Benefits of the R&D Tax Credit?
Qualifying companies can save significantly through the use 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?
R&D tax credits are not limited to lab coat-wearing inventors and groundbreaking products. They are actually far broader and more inclusive than most people think.
Many companies, regardless of size or industry, are eligible to claim Research and Development (R&D) Tax Credits from the federal government. However, a majority of these companies are unaware of their eligibility. As a result, thousands of companies are missing out on substantial federal and state R&D tax credits that they could be benefiting from.
The activities that are eligible for the R&D tax credit are also the activities that are fueling the growth of 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 New Hampshire 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?
Typically, companies can expect to secure a federal R&D tax credit equivalent to 7-10% of their qualified expenses. For example, an individual like a software developer, engineer, or lab technician earning an annual W2 income of $100,000 might enjoy tax savings of up to $10,000.
Expenses eligible for research activities in your company usually include employee compensation, materials, and contracted services. To back up your qualified expenses, you can provide various types of documentation such as payroll records, financial records demonstrating supply or contract research expenses, and vendor invoices.