Software Industry’s COVID-19 Responses are R&D Credit Opportunities
As COVID-19 has forced countless industries to redefine how they do business in 2020 and beyond, the McGuire Sponsel team has assisted current and prospective clients in navigating the domino effect of new rules and regulations. As we mentioned in our analysis of manufacturing client trends, many of our software clients have experienced marginal disruptions to operations and an increase in new business opportunities, contrary to general trends. Both factors contribute favorably to a company’s R&D Tax Credit. Over the past few months, we have been working closely with software companies to identify and qualify their 2020 activities.
Listed below are some of the ways our software clients are capitalizing on their development efforts for the 2020 R&D Credit, while responding to consumer needs in the pandemic:
- Adding new functions to enable remote communication (i.e. video conferencing, screen sharing, concurrent team functions, and tracking/reporting functions)
- Developing new virtual functions and processes (i.e. utilizing geospatial technology to virtually survey a location)
- Developing new controls and automation (i.e. programming automated start/stop functions that do not require an operator)
- Adding and improving e-commerce capabilities (i.e. redesigning platforms to support mobile functions and scaling infrastructure to handle more digital transactions)
- Creating new software functions when pivoting to more pandemic-relevant industries (i.e. redesigning vehicle claims software to process health insurance claims)
- Developing new functions in response to COVID-19 (i.e. adding temperature reading functions to a hospital communication system)
- Improving data processing capabilities (i.e. redesigning database algorithms to generate results more accurately and efficiently)
We hope these examples shed some light on how your company’s activity changes will qualify for the R&D Credit. Regardless of the specific industry, the need for innovative technology and specialized software will continue to grow.
As your company works to solve new challenges and invest in new technology, we are here to ensure your R&D Credits reflect your R&D efforts. Contact McGuire Sponsel today to see how we can help.