Tax Deductions for Scientific Research refer to specific expenses that businesses can deduct from their taxable income when conducting scientific research and development (R&D) activities.
These deductions are designed to encourage innovation by allowing companies to reduce their taxable income based on qualified expenditures. Qualified expenses may include salaries of researchers, costs of materials and supplies, and expenses related to the use of facilities and equipment specifically for research purposes.
For example, if a company spends $100,000 on R&D activities, it may be able to deduct that amount from its taxable income, effectively lowering its overall tax liability. This incentive is often provided under government programs and can vary by jurisdiction, potentially including additional credits or grants for qualifying research activities.
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