The Research and Development Tax Credit is often overlooked, but it can provide enormous benefits to companies that recognize its potential. Typically, organizations claim less tax benefit than they’re entitled to or, even worse, believe they don’t qualify because research and development isn’t their main business. In addition to the federal tax credits, many states have enacted generous credit programs, and some are refundable even if you haven’t paid taxes.
In 2018, Marcum helped clients save more than $40 million using the Research & Development Tax Credit.
R&D Credits Available in Marcum Office Regions*
*States have unique qualifying limitations.
Industries where we’ve helped clients claim the credit
- Business and Professional Services
- Consumer Products (Food & Beverage, Cannabis, Retail & Apparel, Arts & Entertainment)
- Financial Services (Fintech, Alternative Investments, Broker/Dealer, Financial Institutions, Insurance)
- Manufacturing & Distribution (Energy & Utilities, Manufacturing/Wholesale/Distribution, Transportation)
- Private Equity
- Technology & Life Sciences (Data & Analytics, Software Development)
What types of activities qualify?
- Investing in resources for new or improved products.
- Investing to develop new or improved manufacturing or service processes.
- Investing in software and software-related technology – i.e., Artificial Intelligence, financial modeling, fin-tech applications, security protocols, and more.
- Efforts to improve manufacturing efficiency, reduce scrap, and implement techniques like “lean,” “green,” “Kaizen,” and “Kanban.”
- Owning existing patents or patents pending.
2019 Year-End Tax Guide
The Marcum Tax Guide is a reference to be used when you need a quick refresher on certain tax aspects, whether for individual, corporate, international, or estate and gift tax planning application.
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