Value of Research and Development Incentives The Federal program is a dollar for dollar credit for up to 20% of the qualifying expenses over a base amount. For most businesses, this equates to a credit of approximately 6% of qualifying expenditures. At the state level, the incentives can be even greater. Who Qualifies? Originally limited to laboratory sciences, this program has evolved and expanded to include a broad base of industries.
Examples of businesses who benefit from the program include:
Refunds and Carryovers Even if you have no tax liability in the current year, we may be able to secure refunds of taxes paid in the last three years. Also, the credit may be carried forward for up to twenty years.
In addition, many states have "refundable" tax credit programs which allow qualifying businesses to receive cash payments even if they have no tax liability.