There are quite a number of factors that prove eligibility of a project to get tax credits. The refund you will get will depend on the amount you spent in R&D and the size of your business. Refunds differ between small, medium, and large companies. Even if the project makes losses or profits on its implementation, you will still get refunded. If you consider the clues below, you will be eligible for R&D tax credits.
Scalability and performance level of your project is very critical in determining whether there was research and development involved in your project. This means that, there has to be technical uncertainties in your project. What this means is that, only unique and new ideas can be researched about and developed. You cannot claim to be researching about an idea that you know what outcome it will yield once it gets implemented. Another important aspect is the type of innovation that was employed in the research and development of that particular project. For a project to qualify to be a R&D, the knowledge of how it was done must be different and uncommon to other people or projects. It is mandatory that for any project to qualify for R&D tax credits, it must have achieved results that have not been previously achieved.
The amount spent in the research and development of the project is also important in determining if you qualify for tax credits or not. For example, spending $3k or less will mean that you did an obvious project whose results can be know, and there were no technical uncertainties encountered. However, if you spend $100000 in a different project, then it means there were some technical uncertainties that needed to be determined, hence it will definitely qualify. Most projects will require a lot of funds in their research and development, which makes cost a critical factor.
The qualifications of your staff and their number are equally important factors in determining whether you qualify for the tax credits. The more the people you employ in the project and the higher their qualification, the better the position the project stands in qualifying to be R&D. Also, the amount of time these personnel spend in the project has to be more for it to be R&D. This, however, isn’t a necessary signal, and the project can still be viably R&D even with few people involved. This number of qualified people involved in the research and development of the project will help in determining the cost of the whole project. Paying them, buying necessary equipment, and buying the required software means that you heavily invested in the project. Therefore, you will be eligible to get a refund of whatever amount of money you spent in research and development of your project.