What is the federal R&D tax credit?
First, what it’s not: Industry-specific. The government does not define how technically advanced a product needs to be to qualify for the credit. It could be a “low tech” consumer product, an entirely new offering or an improved version of an existing product. “The government does not specify the definition of product; it could be the next best ballpoint pen or a gear for outer space,” Cleminson explains. “Or it could be a new manufacturing process, a better and faster process that assures increased quality and that jobs don’t go overseas.” Nigel Harvey, a physicist and the founder of the Empyrean Group Ltd. in Canada, is credited with helping to pioneer the concept of “shop floor” R&D. (The American division of the company became Intrepid Advisors). “From a history standpoint, I built the business to help people understand what qualified and what didn’t,” Harvey recalls. “Back in mid-1980s, it dawned on me that only a third of people who are eligible would even consider asking for an
