Understanding Research and Development Tax Credits

Research and Development (R&D) tax credits are incentives offered to businesses that invest in innovation and technological advancements. These credits, known as the research and development credit, are designed to reduce the financial burden of R&D activities by providing tax relief. Eligible activities often include developing new products, processes, or technologies. By leveraging these credits, companies can offset costs and encourage further investment in innovation, driving growth and competitiveness.