Tax Credits for Research and Development

Tax credits for Research and Development (R&D) are government incentives that reduce a company's tax bill if they invest in new or improved products, processes, or technologies. They encourage innovation by acknowledging the costs and risks associated with R&D activities. Essentially, if a business spends money on developing new ideas, these credits can directly decrease the amount of taxes owed, making innovation more affordable and promoting economic growth. This benefit applies to qualified research expenses and helps companies allocate more resources toward innovation rather than solely tax payments.