federal R&D tax credit

The federal R&D tax credit is a government incentive that reduces a company's tax bill if it invests in research and development activities aimed at innovation, new product development, or improving existing products. It encourages businesses to spend on scientific and technological advancements by offering a financial benefit, typically a percentage of eligible research expenses. This incentive helps companies recover some costs of innovation, promoting technological progress and economic growth while lowering the financial risk associated with R&D investments.