Have you heard of the Research and Development (R&D) Tax Credit? The Credit for Increasing Research Activities was originally enacted by Congress in 1981 to incentivize research and development in key industries in the United States. Through the PATH Act of 2015, this general business credit became permanent.
The R&D credit rewards taxpayers, big or small, who engage in qualified research activities to take a deduction based on a percentage of eligible expenses. In order to qualify, the business activities must pass a four-part test.