Staying ahead of the competition, especially in the era of COVID-19, is a challenging and often expensive task for U.S. contractors. While many economic incentives are targeted at a particular industry or even a specific company, there is a tax credit available to innovative companies to help level the playing field and incentivize business growth.
The federal research and development tax credit is a complicated intersection of congressional intent, IRS regulations and tax court rulings. The process, while complex, can be navigated efficiently and effectively to help ensure the competitiveness of a construction company. As a general business credit of between 6% and 12% of qualifying expenditures, the R&D credit can provide valuable cash savings enabling reinvestment and growth.
