Capturing Overlooked R&D Tax Credits

The federal research and development (R&D) tax credit was designed to spur technological advances and hiring in R&D fields. In addition, the credit represents a permanent tax benefit, reducing the overall effective tax rate as presented in generally accepted accounting principles (GAAP) basis financial statements. While the energy industry spends billions of dollars each year on research and development, both globally and nationally, the credit is substantially underutilized.

In the Smart Business interview How Oil and Gas Companies Can Capture Overlooked R&D Tax Credits, Weaver’s Robert Henry, partner in tax and strategic business services, discusses new ways companies can utilize R&D tax credits.

• What is the R&D credit
• How is qualifying R&D activity defined
• What oil and gas activities may qualify
• What costs are eligible for the credit

Understanding the tax credit and its applicable utilization can help fully realize the benefits available for the companies incurring millions, even billions, of dollars annually as R&D expenditures.