Can I Claim R&D Tax Credits in New Mexico?
Yes, you can claim R&D tax credits in New Mexico. The state offers a research and development tax credit program known as the Technology Jobs and Research and Development Tax Credit.
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The Research and Development Tax Credit (R&D) is a valuable tax credit available to businesses of all sizes that engage in research and development activities in the United States. This credit is not only 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 activity within the US. It has become increasingly popular among companies, with more and more taking advantage of this incentive each year. Furthermore, the Protecting Americans from Tax Hikes (PATH) Act of 2015 made the R&D tax credits a permanent feature and extended the benefits to startups.
What are the Potential Benefits of the R&D Tax Credit?
Qualifying companies can obtain substantial cost savings through claiming 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
What is the Research and Development Tax Credit (R&D tax credit)?
The Research and Development Tax Credit (R&D) is a valuable tax credit available to businesses of all sizes that engage in research and development activities in the United States. This credit is not only 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 activity within the US. It has become increasingly popular among companies, with more and more taking advantage of this incentive each year. Furthermore, the Protecting Americans from Tax Hikes (PATH) Act of 2015 made the R&D tax credits a permanent feature and extended the benefits to startups.
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The activities that qualify for the New Mexico R&D tax credit are the same ones driving growth in your business.
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10,700
Who Can Claim the R&D Tax Credit?
R&D tax credits were once thought to be exclusive to scientists and creators of groundbreaking products. However, this is not true. The scope of R&D credits is much broader and more extensive than commonly believed.
Businesses of all sizes and across various industries can meet the federal government's criteria for qualified innovation activities and are eligible to claim Research and Development (R&D) Tax Credits. Unfortunately, many companies are unaware that they qualify. As a result, numerous companies are missing out on substantial federal and state R&D tax credits that they could be benefiting from.
Your business's growth is being propelled by the same activities that make you eligible for the R&D tax credit.
- Developed new products
- Improved existing products
- Developed software for internal or external use
- Improved manufacturing processes