In today’s competitive business landscape, innovation is the key to long-term success. Whether you're a tech startup in Brooklyn, a biotech firm in Buffalo, or a manufacturer in Albany, your efforts to develop new products, processes, or technologies can qualify you for valuable tax savings through the R&D Tax Credit. For businesses operating in the Empire State, understanding the opportunities surrounding New York and the R&D Tax Credit can unlock significant financial benefits.

What Is the R&D Tax Credit?

The Research and Development (R&D) Tax Credit is a federal incentive designed to reward companies that invest in innovation. It applies to a wide range of qualifying activities such as software development, product improvements, and engineering research. Many states, including New York, offer their own version of this credit to encourage local R&D and attract innovative companies.

Why New York Businesses Should Pay Attention

New York offers its own R&D Tax Credit as part of the Excelsior Jobs Program. Businesses involved in scientific research and technological development may qualify for state-level incentives in addition to federal benefits. These credits reduce income tax liability and, in some cases, can be refunded or carried forward for future tax years.

One of the major advantages of doing business in New York is the state’s commitment to supporting innovation through programs that are tailored to small and medium-sized enterprises, especially those operating in high-tech industries.

Who Is Eligible?

Your company may qualify for the New York R&D Tax Credit if it:

• Performs research to develop or improve products, software, or manufacturing processes

• Employs engineers, scientists, or technical experts

• Maintains technical documentation, prototypes, or conducts testing

• Operates in industries such as healthcare, technology, manufacturing, energy, or agriculture

Both established companies and startups can benefit, provided the R&D activities meet the IRS’s four-part test.

How to Claim the R&D Tax Credit

The process of claiming the R&D Tax Credit can be complex, involving the gathering of detailed records, project descriptions, and cost calculations. To ensure accuracy and compliance with IRS and New York State guidelines, it is highly recommended to work with experienced professionals.

That’s where the experts at
???? Swanson Reed - New York R&D Tax Credit come in.

Swanson Reed specializes in helping New York businesses navigate the R&D tax credit process, ensuring they claim every dollar they’re entitled to while remaining fully compliant.

Final Thoughts

Whether you’re launching a new product or refining an existing one, innovation costs money—and that’s where the R&D Tax Credit can help. For companies in New York, this incentive represents an opportunity to reduce tax burdens, reinvest in growth, and stay ahead of the competition.

Explore how your business can benefit from the
New York and the R&D Tax Credit
and turn your innovative efforts into measurable financial rewards today.