At 121G Consulting, we’re helping companies see R&D in a new light. Recent changes in U.S. tax law have made a simple question — where is your software developed? — one of the most financially important decisions a business can make.
Our latest infographic, “Domestic R&D Partner Drives Financial Savings and Benefits,” reveals how keeping your R&D onshore can create massive advantages for your bottom line.
When you choose a U.S.-based development partner, the numbers speak for themselves. Domestic R&D allows for immediate tax deductions and makes you eligible for Federal and State R&D tax credits of up to $500,000 per year for five years. In contrast, foreign R&D must be amortized over 15 years and doesn’t qualify for those credits — delaying your access to capital and increasing your long-term costs.
The difference is striking: companies that work with 121G Consulting can see over $310,000 in additional annual cash flow on a standard R&D project. That’s money that can be reinvested in innovation, talent, or new technology — instead of being locked away in amortized costs.
But the benefits go beyond the tax table. Partnering with a domestic R&D team also means:
- Faster access to capital for reinvestment
- Reduced financial risk on abandoned projects
- No foreign VAT or GST costs
- Collaboration with a trusted U.S.-based development team that aligns with your business goals
In today’s competitive tech landscape, every advantage matters. By keeping R&D close to home, companies not only strengthen their financial position but also contribute to a thriving U.S. innovation ecosystem.
At 121G Consulting, we believe your R&D spend should go further — unlocking tax benefits, increasing cash flow, and fueling innovation right here at home.
