Research and Development (R&D) Tax Credit

The Research and Development (R&D) Tax Credit is a government incentive designed to encourage businesses to invest in innovation. It allows companies to reduce their tax liability by claiming a credit for eligible expenses related to research activities, such as developing new products, processes, or technologies. This credit can apply to wages paid to employees involved in R&D, materials used in projects, and some costs related to prototypes. Essentially, it helps offset the costs associated with innovation, making it more affordable for businesses to experiment and improve their offerings.