3 Steps of R&D Activities You Need To Know

At Lindon Engineering Services, our Research and Development Tax Credit activities span the investigation of business activities to improve or create products and/or procedures. The 3 steps include Basic Research (The exploration to obtain a more complete understanding of fundamental aspects of a concept), Applied Research (The investigation of methods to obtain specific objectives regarding product or processes), and Development Research (The examination of the implementation of research knowledge and designs for production). Starting R&D is best when the market is slow, or if due to the nature of the product, it can be protected by patents and copyrights. It might also mean incurring a negative cash flow till the results from the R&D are positive. However it is not considered a loss making proposition, The Research and Development Tax Credit, made permanent through the Protecting American Against Tax Hikes (PATH) Act during 2015, allows companies to avail of credit for qualified research activities and expenses, thus lowering the impact of negative cash flow.