R&D Tax Credits for Startups
This article explains the significant benefits that startups in 2022 receive when using R&D tax credits. For companies to qualify for R&D tax credits, their ideas must be a new or improved business component for a permitted purpose, include activities technological in nature, have elimination of uncertainty, and use the process of experimentation. The amount companies get back in R&D research “depends on the sum of your Qualified Research Expenses (QRE), which can include wages, contractor costs, and supply costs.” Start-ups can now use the R&D tax credit to offset up to $250,000 of their FICA payroll tax for their first five taxable years. Less than one-third of companies are aware that they qualify for the R&D tax credit. Be sure to hit the link for more information on the benefits of R&D tax credit!
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