The US government has a tax credit on the books that companies can take if they invest in research and development. If you use a development process to create new functionality, then you qualify for this credit. Good stuff.
There are some legal stipulations you must meet to claim the credit. But most software development activities qualify. The work must be technical in nature. There must be a probability of failure. And you need to be doing some experimental research.
Your business should file Form 6765 with your taxes to claim the credit. This is something your CPA should know about. The R&D credit is an old one dating back to the early eighties. Cash in now.
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