R&E with Angi: Are You an Innovator?
You are a company who feeds on making new products. You are a company who wants to meet customer needs by customizing a current product that you already offer. You thrive on innovation and continue to invest resources into designing or improving a current product, process, technique, formula, or software. Whoever you are, you care enough to invest hard earned dollars because you believe in the change, and you believe in an ever evolving world of technology. You are an innovator. Being an innovator can be costly. Sometimes you win and your new and improved product, process, technique, formula, or software becomes something great for that end user, but sometimes you fail and have to start back at the drawing table. Either way, there is economic risk. And sometimes that economic risk can be extremely costly.
The IRS has a credit to help encourage innovation by giving you “free money”. Yes, that’s right... it’s money the IRS is willing to give to you just because you rolled the dice on innovation and incurred out of pocket expenses to make your product, processes, techniques, formulas, or software better or to introduce them new into the world.
This sounds too easy. Why would the IRS give money to businesses who are just paving the way to their future. Because... the IRS believes in innovation. They want to encourage companies to evolve, to invest in their current product line to make it better, to constantly seek ways to improve processes or formulas, and to keep innovation current by introducing new software. They believe so much in innovation that they are willing to give you dollar for dollar credit for the time and material you used in your efforts to innovate.
This credit is called the Research and Experimentation Credit (also knows as the Research Credit, the Research and Developmental Credit, the R & D Credit or the R & E Credit), and I can help you claim this credit.
To learn more about R & E Credit, click here.