The Research and Development (R&D) Tax Credit is a government-sponsored tax incentive that rewards companies for conducting research and development in the United States. The credit was implemented to incentivize innovation throughout the economy and keep technical jobs within the country.

The R&D Tax Credit is available to a wide range of disciplines comprised in the applied sciences field and other technical research areas. Consequently, companies from numerous industries qualify to receive this incentive.

Research and Development Tax Credits were created to be accessible to businesses of all sizes, not just major corporations with research labs. Therefore, many companies and a large list of activities are eligible for the credit.

Every state in the U.S. can offer its particular R&D Tax Credit, which is typically combined with the federal one. Moreover, U.S. Companies can benefit from an incremental R&D tax credit, made up of two different incentives known as the Traditional R&D Tax Credit and the Alternative Simplified Credit.