Research & Development Tax Credit
A credit for businesses that invest in research and development activities in the United States.
Estimate Your Savings
This is a simplified estimate. Actual savings depend on your complete tax situation.
Eligibility
Businesses conducting qualified research activities
Requirements
- 1Must conduct qualifying research
- 2Research must be technological in nature
- 3Must involve process of experimentation
Required Tax Forms
Understanding the Research & Development Tax Credit
A credit for businesses that invest in research and development activities in the United States.
Tax credits directly reduce the amount of tax you owe, making them more valuable than deductions which only reduce taxable income. On average, taxpayers save approximately $25,000 with this credit.
To claim this credit, you will need to file Form 6765 and Form 3800 with your annual tax return. Make sure you meet all eligibility requirements and keep documentation of qualifying expenses or activities.
Calculate Your Full Tax Picture
Use our free tax calculators to estimate your total tax liability and savings.
Browse Credits by Category
Frequently Asked Questions
What is the Research & Development Tax Credit?
A credit for businesses that invest in research and development activities in the United States.
How much is the Research & Development Tax Credit worth?
The average savings from the Research & Development Tax Credit is approximately $25,000 per year, depending on your specific situation.
Who is eligible for the Research & Development Tax Credit?
Businesses conducting qualified research activities. Key requirements include: Must conduct qualifying research; Research must be technological in nature; Must involve process of experimentation.
What forms do I need to claim the Research & Development Tax Credit?
You will need to file Form 6765, Form 3800 with your tax return to claim this credit.
Is the Research & Development Tax Credit refundable?
Most business and energy tax credits are nonrefundable but can be carried forward to future tax years.
Can I claim the Research & Development Tax Credit with other tax credits?
Yes, in most cases you can claim the Research & Development Tax Credit along with other eligible tax credits. However, some credits have interactions that may reduce the benefit. Consult a tax professional for your specific situation.