Yesterday the SSD community gathered to discuss a game-changing new federal funding opportunity.
Many software companies are unaware that federal and state R&D tax credits exist and better yet, that they are eligible to leverage these economic incentives. These credits are eligible to companies conducting R&D in the US and were implemented to stimulate national R&D. What many don’t know is that these credits are for businesses of all sizes, serving any vertical. If you are a company that designs or develops any kind of software you may qualify.
During the hour, Michael Siegel, Managing Director at alliantgroup walked us through details of the R&D credit, who qualifies and how to determine if you qualify.
Michael also shared two game-changing developments for small businesses and startups. First, starting in 2016, AMT, which has been the largest barrier to claiming the R&D tax credit has been removed. This means that when it comes to calculating the credit, the tentative minimum tax is treated as being zero for those companies defined as ‘eligible small businesses’. Second, is the new startup provision, which now allows startups (defined as businesses with gross receipts of less than $5 million a year) to take the credit.
The benefits of this legislation can make a huge impact on small businesses and startups. Make sure you are taking every opportunity afforded under the R&D Tax Credit. alliantgroup is an expert in helping companies maximize these tax credits and incentives and can quickly assess if you are eligible. If you would like more information or have questions, please connect with Michael Siegel, Managing Director, alliantgroup, firstname.lastname@example.org.