R&D Overview

What is the R&D Program?

The Research and Development tax credit program is a government tax incentive program to encourage businesses of all sizes and in all sectors to conduct R&D that will lead to new, improved or technologically advanced products or processes.

What Activites qualify as R&D?

Eligible research and development activities take place in many companies, not just in the pharmaceutical industry or in the field of high tech. Shop floor R&D, that is R&D that is not carried out in a laboratory setting, i.e. some or all must be carried out in a production and/or manufacturing environment. This usually involves experimental production or experimental process modification. Activities that your engineers or technical staff may regard as routine may well qualify for an R&D tax credit as experimental development.

Your firm may be eligible to claim R&D tax credit if it:

What R&D Costs are eligible?

• Salaries / Wages
• Materials consumes (scrapped)
• Subcontractor labor

Can I recover R&D tax credits from previous years?

In some cases, we can go back several years to recover R&D tax credits for qualifying activities. TMG will review your history and tax codes and provide documentation for refunds covering these earlier tax years. Unused tax credits could be carried forward for up to 20 years.