The R&E tax credit is a federal wage-based tax credit available for the development or improvement of products, processes, techniques, formulas, inventions or software. In addition to qualified wages, companies may capture supply costs for prototypes, as well as 65% of contracted labor spent performing qualified research on behalf of the company. In addition, over 35 states have an R&E tax credit program as well.
US R&E Tax Credits
What is R&E Tax Credit?
- Developing new technology, new , improved or more reliable products, processes or formulas
- Developing prototypes or pilot models, new tools, molds or dies
- Developing or applying for patents
- Testing new product designs
- Developing or improving production or manufacturing processes
- Developing new software applications
- Expending resources on outside consultants or contractors to do any of the above-stated activities
There are four basic requirements for research activities to qualify:
- Qualified research activities are defined as the development or improvement to a business component, which is defined as a product, process, technique, formula, invention or software.
- The research must be technological in nature. That is, the process of
experimentation used to discover the information fundamentally relies upon the physical or biological sciences, engineering or computer science.
- Furthermore, companies may use existing technologies and may rely upon existing principles to satisfy this requirement.
- Their search must be intended to eliminate uncertainty concerning the development or improvement of a business component. Uncertainty exists if the capability or method for developing the business component is unknown, or if the appropriate design of the business component is unknown.
- Elimination of the technical uncertainty must be accomplished through a simulation.
Financial benefits of the R&D Tax Credit Programs – Canada & USA
|Canada Scientific Research & Experimental Development (SR&ED) Tax Credit||USA Research & Experimentation (R&E) Tax Credit|
- We identify what projects qualify in a consultative manner.
- Prepare a science report on these qualified projects which we identified.
- Prepare costing and the tax forms to quantify the expenditure gone into solving those qualified projects.
- Follow up with the Government to check the status of the filing.
- Either the Government approves the claim without an audit (happens 90% of the time for EVAMAX Clients). And money is released.
- In case, the Government wants to conduct a technical/financial/both audits. EVAMAX prepares & defends the clients in these audits. And money is released after the audit.
EVAMAX Team Expertise:
EVAMAX is a team of highly qualified and experienced professionals in diverse fields of engineering and science, tax & finance. Our team is very effective and result oriented. We have been claiming unmatched success by maximizing the R&D Refunds for our clients.
EVAMAX SERVICE STANDARDS
- Excellent internal controls and best practices to ensure program compliance, expediting and seamless client service experience. Including use of Workflow software. We apply the same philosophy for our client’s best practices improvement and tools for effective internal controls and documentation process, to maximize their benefits from the R&D Tax Credit programs.
- Interviewing the client’s technical staff & identifying the qualifying activities and expenditures,
- Preparing technical reports and tax schedules,
- Defend & prepare client for technical & financial reviews.
- Track & Expedite your claim from Start to Finish.
- Access to easy-to-use proprietary tracking system capture all R&D activities and costs to guarantee maximization of R&D claims.
With our size and infrastructure, we cater to clients located anywhere in Canada and USA.