Podcast: Maximizing the R&D Tax Credit: Expert Tips and Strategies for Businesses

On today’s episode of Weaver’s On the Shop Floor podcast, hosts Colby Horn and Jody Allred, speak with Nancy Imholte, Director of R&D Tax Credit Services and Kurtis Dixon, Partner, Tax Services, to talk about the rules and regulations surrounding the R&D tax credit.

Key Points:

• Compliance tips for businesses regarding the R&D tax credit
• Recent changes to the R&D tax credit from the IRS
• IRS audits of R&D tax credit claims

How has the R&D tax credit changed since its inception and what does the future hold for this incentive?

The R&D credit allows businesses to claim a tax credit for qualifying research and development expenses, including wages, supplies, and contract research costs. It was created to incentivize businesses to invest in innovation and technological advancement in the United States, and it can provide a significant cash infusion for future development.

The R&D tax credit was introduced in 1981 as a temporary measure to encourage innovation and investment. Since then, it has been extended and modified several times and was made a permanent tax credit in 2018.

“Research and Development (R&D) credits are a federal incentive to encourage companies to develop R&D in their companies and increase their spending year over year. It can be a nice cash flow incentive for companies,” said Imholte.

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