Federal and state research and development tax credits (“R&D Tax Credit”) reward companies based on their investment in developing new products and processes. While there are many myths associated with the R&D Tax Credit, many companies are entitled to this lucrative tax planning tool.
Credits are not limited to companies that invest in their own product development. The R&D Tax Credit applies to companies that continually invest in process initiatives, innovative designs, technologies, and contract manufacturing. Companies may claim the credit for products they have developed to sell to their customers. The R&D Tax Credit’s criteria is very subjective and tailored to each business’ approach to product, process, and technological development.
Hungerford invests the time to educate taxpayers on how they may qualify for the R&D Tax Credit and constructs a claim that meets the highest levels of IRS and state scrutiny.
Connect With Our R&D Tax Credit Experts
Get in touch with our CPAs and business advisors today. We have five locations across to help serve you better. Visit our offices in Grand Rapids, Greenville, Holland, Muskegon, or St. Joseph.
Does Your Business Qualify?
Many companies underestimate the scope of activities that qualify for the Research and Development Tax Credit. You do not need a formal R&D lab to benefit. Businesses that develop new products, improve manufacturing processes, create custom software, or engineer solutions to technical challenges may qualify for substantial federal and state tax credits.
The credit is calculated using either the regular credit method or the alternative simplified credit method, and can offset both income tax and, for qualifying small businesses, payroll tax. Hungerford’s tax professionals conduct thorough analyses of your operations to identify and document all qualifying activities, ensuring your credit claim withstands IRS scrutiny. We have helped manufacturers, technology companies, construction firms, and food processors across Michigan realize meaningful tax savings through the R&D credit.