Strategies for Capitalizing on R&D Credits for Small to Medium Sized Businesses

Find ways to support your clients and identify opportunities to minimize tax liability.

The biggest benefit to this topic is to recognize the potential impact of the recently enacted One Big Beautiful Bill Act as well as the coming changes related to documentation. The Research & Development Tax Credit is one of the more complicated and difficult to understand tax incentives available to U.S. taxpayers. R&D tax professionals need to answer several essential questions, such as: How can I tell if the activities of my client qualify for this credit? How does the recently enacted OBBBA impact past filings and opportunities for the future? What additional information needs to be provided with an R&D credit claim on an amended tax return? What impact have recent court cases had on documentation for sustaining an R&D tax credit? This material focuses on the CPA and financial executive whose responsibilities include minimizing their clients' or companies tax liability while developing the required supporting documentation. We will review how and why activities qualify as well as how the time and effort expended by the taxpayer can be translated into a federal (and in many cases, state tax credit). Failing to understand how to properly assess and document the qualifying activities is the most common mistake made and can lead to an unfavorable result if audited. The topic is critical for CPAs and financial executives who need to understand both the basics of the R&D tax credit and the potential pitfalls that may disqualify an activity from generating the credit.