Many computer science companies are missing out on valuable tax credits they deserve! One such credit is the Research & Development Tax Credit (R&D tax credit) offered by the IRS for the purpose of incentivizing companies that perform R&D activities. The credit is designed to reimburse companies who develop new products or inventions and offers a significant percentage back to the company for Qualified Research Activities and Qualified Research Expenses. You do not need to be a large company to qualify for the credit. ETS has helped companies of all sizes across the United States to identify these expenditures and receive the tax benefits they have been missing.

Companies in the software industry can potentially claim the R&D Tax Credit for the subsequent categories:

  • Third Party Sale, Lease or License Software (for both new releases and version upgrades)
  • Internal Use Software (for both new releases and version upgrades)

 Potentially qualifying activities include:

  • Iterations of source coding
  • Iterations of algorithm development
  • Alpha testing
  • Beta testing – if you have to go back to incorporate feedback and develop additional source coding for functionality, performance, reality, or quality

If your company performs any of these activities relating to the Research Tax Credit, please contact one of our Industry leaders for a free consultation at (561) 253-6640 or email here.

ETS can assist in securing the documentation that is required for designers and builders to take advantage of the Cost Segregation, R&D Tax Credit, 179D energy tax benefit, and 45L Tax Credit.