Research and Development tax credits seek to reward businesses that are employing U.S. labor to develop or design products and processes. These innovations are a significant contributing factor in driving the economy and the creation of new jobs. So, if you’re performing your technical work in the U.S., the government encourages you to take advantage of this credit. It’s one of the most powerful tax incentives available to taxpayers. Due to several recent legislative changes, this incentive is now available to many smaller businesses that have often overlooked these credits due to misinterpretation. Moreover, recent published case law and solid IRS guidance have made it easier to navigate qualification. If you qualify for the R&D tax credit, you can claim up to 13% of your qualified research expenses. These expenses consist of labor, outside contractors and supplies. While the majority of states allow for a 3-year tax look back period, for which an individual or business can amend returns to claim a refund of taxes paid, some states have a 4-year look back period.  You can also take credits on your 2017 return and offset your tax payments on March 15th or April 15th.  There has never been a better time to take advantage of the R&D tax credit!