As we finish up our blog series on the eight myths that are costing software and technology government contractors big dollars in annual tax savings, let’s turn our attention to the eighth and final R&D Tax Credit myth:
Myth 8: My government contract is expiring. I missed my chance to qualify.
Not necessarily. The R&D Tax Credit allows companies to retroactively claim their savings for all open tax years, meaning companies can still claim their credits from 2011-2014. For companies that have performed software and technology work for the government over the last few years, this represents a tremendous opportunity to benefit from projects that have already been completed.
Essentially, by being allowed to retroactively claim the credit, qualifying companies are being offered additional funds on-hand for immediate reinvestment. The key take home in all of this—applying for the R&D Tax Credit could be the difference between having the funds necessary to reinvest in a company’s products, services or employees—and those firms that self-censor could be missing out on a huge financial opportunity for their business.