What is the Tax Credit Potential?
Company A has $20 million in annual gross receipts, uses technology in its operations and could qualify $1 million, 5 percent, of its expenditures as R&D (this percentage varies by industry and company). Assuming a few other variables are addressed favorably, the annual credit could total $65,000. Many companies can also claim R&D tax credits in three previous tax years and amend their returns to get refunds. In this example, Company A could receive a total of $260,000 in credits for the current and three past tax years.