White Papers
Refueling innovation in the US chemicals industry by taking advantage of the research and development tax credit
The federal Research and Development (R&D) tax credit, also known as the Research and Experimentation (R&E) tax credit is a major US economic incentive intended to encourage innovation and manufacturing within the US. It can provide companies with a significant, direct reduction in income tax liability for increasing their investment in scientific and technology based development projects compared to the previous three years. This investment is usually in the form of qualifying employee activities and other expenses related to product and process development, where the outcome is uncertain. It is therefore worthwhile for any US based business in the chemical industry that is attempting to innovate to consult with an R&D tax credit professional if they are not already claiming this credit. Even if a company is already claiming this credit it is worth examining to ensure this benefit is truly optimized.