About R&D Tax Credit Services
The Research and Development Tax Credit service (R&D Tax Credit), also referred to as the Research and Experimentation (R&E) Tax Credit, is a federal benefit that offers businesses money to money cash savings for carrying out tasks related to the development, design, or improvement of goods, procedures, formulas, or software. This credit provides much-needed funding for a variety of projects, including facility expansion, increased R&D, and personnel hiring. The R&D tax credit regularly provides a wide range of businesses with a source of extra cash—up to 10% of annual R&D costs for federal purposes and much more when state credits are factored in.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
The market for R&D Tax Credit Services is highly competitive with several global as well as local players in the market. The global players are trying various strategies such as service innovation and using various marketing strategies to gain a higher market share. Analyst at AMA Research estimates that United States Players will contribute the maximum growth to Global R&D Tax Credit Services market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
PWC (United Kingdom), KPMG (Netherlands), Think LLP (United States), ADP (United States), Leyton, (France), Apex Advisors (United States), R&D Incentives Group (United States), Source Advisors (United States), Alliant group (United States) and Withum (United States) are some of the key players that are part of study coverage. Additionally, the Players which are also part of the research coverage are CBIZ (United States), Alvarez and Marsal (United States), Tri Merit (United States), PM Business Advisors (United States), BDO Global (Belgium) and Tax Point Advisors (United States).
Segmentation Overview
AMA Research has segmented the market of Global R&D Tax Credit Services market by Type (Basic Research, Applied Research and Experimental Development), Application (SMEs and Large Sized Enterprises) and Region.
On the basis of geography, the market of R&D Tax Credit Services has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Deployment, the sub-segment i.e. Cloud Based will boost the R&D Tax Credit Services market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth. If we see Market by Method, the sub-segment i.e. Traditional Method will boost the R&D Tax Credit Services market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Technological Advancement and Uses of AI in R&D Tax Credit Services and Innovation of New Software Applications for R&D Tax Credit Services
Market Growth Drivers:
Rise in Demand in Firm’s Corporation Tax reduction, Surge in Demand in IT and Software Development Firms and Surge in Demand of Taxpayers for Product Development and Process
Challenges:
Lengthy and Time Consuming Process, Lack of Knowledge about R&D Tax Credit Services among Individuals and Lack of Time Tracking Techniques for R&D Tax Credit Services
Restraints:
Fraudulent Activity Associated with R&D Tax Credit Services and Hacking and Cyberattacks issues Associated with R&D Tax Credit Services
Opportunities:
Continuous Growth in Fintech Infrastructure and Rapid Growth in IT and other Corporate Sector
On 20 May 2022, International consulting firm Leyton announced the release of REV by Leyton, a digital tax platform aimed at startups and small businesses to help them identify tax credits they might qualify for, starting with R&D and employee retention credits. Other types of credits are expected to be added to the platform at a later date.
Technological innovation is a primary engine of long-term economic and productivity growth, and research and development (R&D) helps fuel the innovation process. The federal government has fostered private R&D investment in several ways, including two tax incentives: (1) an option to deduct eligible research expenses as current expenses under Internal Revenue Code (IRC) Section 174(a) that expired in 2022 and (2) two versions of a tax credit for increases in qualified research expenditures (QREs) above a base amount under IRC Section 41. The IRC Section 41 research and experimentation (R&E) tax credit entered the tax code in 1981 and became a permanent provision in 2015, after having been extended 16 times.
Key Target Audience
R&D Tax Credit Services Providers, New Entrants and Investors, Venture Capitalists, Government Bodies, Corporate Entities, Government and Private Research Organizations and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.