But you only have until April to claim it.

If you developed any new or improved products during  the 2010-11 financial year you may qualify for the federal government’s Research & Development (R&D) Tax Incentive scheme.

The benefits of the scheme are significant:

•  Cash rebate of up to 45% of eligible development costs (for start-up companies or companies in tax loss)
•  Tax cuts of up to 15% of eligible development costs for tax-paying companies.

These rates apply from 1 July 2011.  For costs incurred before then the respective rates are 37.5% and 7.5%.

If you answer yes to the following questions you could well be eligible for the scheme:

•  Have you developed a new or improved product (this can include non-tangible products such as software)? Products developed for clients where you bear the commercial risk if the product does not perform will qualify.
•  In order to develop the product have you had to devote significant time and effort, including experimentation, to make it work? It does not make a difference if the project failed.
•  Did you incur the expenses in a company structure? It cannot be a trust structure.

For expenses incurred in 2010-11 you must register an application for the Incentive with AusIndustry by April 30, 2012, or you will lose any claim you may have.

If you are unsure whether your business is eligible for the research and development tax incentive, or if you would like assistance in registering and making a claim, please contact the experienced team of accountants and tax agents here at The Quinn Group. For more information on the incentive or for any other business tax related queries submit an online enquiry or call us on 1300 QUINNS (784 667) or on +61 2 9223 9166 to book an appointment.