Your Roadmap to Claiming R&D Tax Credits
![Two quality control technicians review research results in lab Two quality control technicians review research results in lab](/-/media/adp/blog/articles/featuredimages/8/9/891964_your-roadmap-to-claiming-rd-tax-credits.jpg?rev=feb0390800c04491a732658e581f3463&la=en&h=458&w=815&hash=4D9780865FBBB61BC4AC618EB3AD61DF)
Is your business undertaking research and development (R&D) activities? If so, you may be eligible for the R&D tax credit.
In 2015, the Protecting Americans from Tax Hikes (PATH) Act expanded (and permanently extended) the R&D tax credit to encourage small businesses to invest in research and development activities.
According to the Internal Revenue Code (IRC Section 41), the following expenses—when related to qualified R&D activities performed in the United States—are eligible for the R&D tax credit:
- Wages paid to employees performing the R&D activities
- Supplies (tangible, raw materials) used to conduct the activities
- Cloud computing expenses used to develop qualified software
- Amounts paid to contractors involved in the R&D activities
Follow the R&D tax credit claims journey illustrated by the infographic below. Open the full-sized infographic on a new page.
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Did you know there's nearly $15B in R&D tax credits available to help both both large and small businesses? Get more information.