United States
Innovation, aside from being coined as the blueprint for success by the Turnbull government, can greatly benefit companies at a firm level. However, to transfer innovation into reality, business leaders need to invest in the skills, systems, processes and collaboration structures that will make it a national competency.
Consequently, research and development (R&D) makes the prospect of being more innovative more accessible to companies and is one of the best tools to differentiate from competition. Investing in R&D is imperative if companies want to stay ahead of the technology curve and grow by developing new products, processes or software. R&D, aside from driving innovation in companies, can be an important driver of economic growth for businesses and the nation at whole.
Fortunately, the government offers a tax benefit for companies who have engaged in R&D activities. The tax benefit essentially makes the prospect of investing in innovation much more viable. The Research and Development (R&D) tax incentive, as it is formally called, is one of the most effective methods of support for research in Australia and can provide companies with up to 43.5 cents back for every eligible dollar. However, just how much a company can claim is largely dependent on the revenue that company generates in a fiscal year.
The intention of the incentive is to boost innovation and improve businesses processes while providing generous tax benefits. Start-ups, large, small and medium sized companies can qualify for the incentive if they have eligible activities. To find out if you meet the requirements of the R&D tax incentive, have a chat to AusGrant today.
