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For startups & small businesses with gross receipts of less than $5 million, the IRS has allowed up to $250,000 of an R&D credit to be applied against the company's payroll tax liability.
IRS Code Section 41 - R&D credit - was created to give startups an added benefit in the processes of conducting research in the name of innovative product creation, even if these activities are not profitable.
So how do you, as a startup, use the R&D credit to offset your payroll tax liability? We'll tell you.
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