In today's fast-paced business landscape, staying ahead of the curve is paramount for success. One of the most powerful yet underutilized tools in a company's arsenal is the research and development (R&D) tax credit. Recently, I had the privilege of engaging in a lively discussion with Russ Westergard of B10 Capital, a distinguished expert in this domain, who shed light on the intricacies of R&D tax credits and their significant implications for businesses. We also talked about the four part litmus test which is used to analyze a business tax return to determine if you have $$ just waiting to be claimed for business activities you've already paid for. Tune into the episode to learn what those are.
**The Evolution of R&D Tax Credits: A Permanent Fixture**
The landscape of R&D tax credits has evolved considerably, particularly with the enactment of the 2017 Tax Cuts and Jobs Act and subsequent 2025 legislation, colloquially known as the "One Big, Beautiful Bill, or OBBB" which have cemented these credits as a permanent and POWERFUL fixture in the tax code. This permanence provides businesses with the stability and peaceful assurance needed to plan their innovations and investments with confidence.
Russ Westergard eloquently navigated the complexities of these credits, emphasizing their transformative potential. For companies, the ability to recapture spending on innovation, as far back as inception (for some C-Corps) opens a treasure trove of financial opportunities. Similarly, LLCs can look back three years to claim these credits, offering a retrospective financial boost that can be reinvested into future innovations.
**The Strategic Advantage of R&D Tax Credits**
The strategic advantage of R&D tax credits lies in their dual ability to reduce tax liabilities while simultaneously encouraging firms to innovate and expand. By recovering past tax credits, companies can increase their revenue streams, thereby fueling further research and development. This cyclical process not only fosters a culture of continuous improvement but also positions companies at the forefront of their industries.
Russ and his team of tax experts at B10 Capital have established a successful track record in assisting clients to reclaim these credits. Their expertise ensures that businesses can navigate the often-complex tax landscape with precision, unlocking hidden value and driving future success.