Can the R&D tax credit be carried forward?
Unused tax credits can be carried forward for up to 20 years. By doing this, you are applying your unused tax credits to future tax liabilities.
If you choose to carry forward your R&D tax credits, you usually have two options:
- Give up your tax benefit in exchange for an immediate refund
- Apply the loss to your tax return from the previous year or future years without any time limit
Carrying R&D tax credits forward is a popular option for companies that didn’t turn a profit, as it expands their financial protection.
