As a business in New Hampshire, if you have qualifying research and manufacturing expenditures, you are allowed to file for the New Hampshire Research and Development Tax Credit. The credit you receive will be based upon the amount you paid people in your company, as they worked on “discovering information which constitutes qualified research and development of a new or improved manufacturing process or business component of the business organization”.
The credit you will receive would be either $50,000 or 10% of all the money you paid out, whichever was less. Your business can use this credit towards your business taxes over 5 taxable periods. All you need to do is attach your R&D Award Letter to your business tax return.
If too many businesses apply for this tax credit, you may find that your credit will be much lower. This happens when the $7,000,000 set aside for this purpose is reached for the year.
All businesses are welcome to apply for the Research and Development Tax Credit. However, if you are a unitary business or enterprise, you will be considered a single taxpayer when you claim the credit.
You must apply for this credit and have it postmarked by June 30th. By July 31st, you will be notified that your application was received. If you were granted a tax credit, your notification will be sent via mail by September 30th.
If you need assistance with knowing what tax credits you qualify for, please contact us at Alfano Law Office today.