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If you have a scientist or engineer on staff or contract, you could be missing out on government incentives designed to support advances in technology. Both the Federal and state tax codes have credits for research and development expenses.
I spoke with Businessweek about this topic recently.
The Federal credits have become more attractive for entrepreneurs in recent years because they’ve been simplified, can be transferred in an acquisition, and can be taken retroactively. And they are particularly good for startups, since R&D costs incurred in years when a company has no income can be carried forward to offset taxes on future profits.
Florida’s credit is new, and applies to expenses in tax years beginning January 1, 2012. There’s $9 million available for this year, on a first come basis. If you spend more this year than you did (on average) for the past four years, it’s worth investigating.
If you haven’t had an expert evaluate whether you should claim this credit, contact me at shaggard@kaufmanrossin.com for an assessment!
