Tax Credit for R&D – The cost of Patents included
Tax Credit for R&D – Patents included
Uncle Sam gives a rather generous “R&D Tax Credit” to small & medium businesses engaged in R&D activities. The definition of “R&D” seems to be pretty broad. Check with your CPA to see if you qualify for a tax credit for part of your R&D budget, including patent attorney fees and USPTO filing fees. Might be a good thing to look into.
See Full Story.
http://www.todaysengineer.org/2010/Mar/Tax-credits.asp
http://www.irs.gov/businesses/small/industries/article/0,,id=97640,00.html
This credit has been around for many years, and I’m often surprised at what a “well kept secret” it can be. It seems like many of the accountants I talk to are aware of it, but they are sometimes not familiar enough with what their R&D department actually does all day to try and take advantage of it.
One more example of why R&D people need to understand the basics of project and corporate accounting, and why corporate finance folks need a basic knowledge of what goes on in their companies’ labs.
Simple, often overlooked lesson: Walk over to a different part of your building once in a while and talk to people outside of your area about what you do and what they do!