If you have seen this Form 6765, you must know what I am talking about. -
If you have not seen the Federal Form 6765 "Credit for Increasing Research Activities", aka R&D or RTC, this is an example of how the Federal R&D tax credits (Regular Research Method) can be generated, for a fictitious company, XYZ, Inc. -
For startups, $350,000 in Qualified Research Expenses (QREs) can generate up to $35,000 in Federal R&D tax credits, not to mention the applicable state R&D tax credit. -
Of course there is much more in determining how the qualified wages, supplies, and contract research were calculated but this is what R&D specialists can assist with, the delivery of federal and state R&D tax credit forms. Feel free to reach out with any questions you have when looking into a R&D tax credit engagement.