Exploring Research and Development Tax Credits: Telecommunications
Telecommunications companies are significantly stepping up their investment in research and development (R&D) because of drivers such as industry growth, fierce competition, bold mergers, convergence and consumer demand for product innovation. 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:
- Replacement of legacy services (platforms, network infrastructure, etc.) with newer technology approaches (e.g., VoIP)
- Enhanced security infrastructure that supports broader network services access
- Intranet and Internet software development where scale and complexity present technological challenges
- Large, complex projects to re-platform or consolidate technology behind multiple business lines
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 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.
For more information, see the attachment below.