Exploring Research and Development Tax Credits: Entertainment and Media
Research and development (R&D) is a differentiator in the entertainment and media industry, as voice, data, and video converge into new platforms and new product lines. Consumer demand and intense competition for innovative products, special effects and alternative delivery channels are driving heavier investment in R&D. You can address the cost and risk of research and development (R&D) by leveraging available federal, state, and local tax incentives.
Initiatives that may be eligible for R&D tax incentives include visual effects, animation, media asset management systems, facilities design (all digital facilities), computer gaming, digital television, web-based systems and interactive media, wireless projects, co-development projects with vendors, labs, and patents and intellectual property.
Whichever credit you explore, you must be prepared to defend reported R&D tax credits. The Deloitte Tax R&D team is a national practice of highly experienced tax professionals specializing in R&D tax incentives and includes former senior officials with the Internal Revenue Service (IRS) and Treasury who participated in drafting the legislation and regulations. These specialists can help you identify qualified R&D activities and assemble documentation to defend your claim, based on their extensive knowledge of the law and your industry.
The Deloitte Tax R&D approach includes a customizable tool that helps to automate the computation and information gathering, and a Quality Assurance team that reviews deliverables and computations.
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