When it comes to research and development, where your projects are managed matters. Under current U.S. tax law, companies that keep their R&D work domestic enjoy immediate deductions and valuable tax credits—benefits you lose when outsourcing projects overseas.
In fact, a recent 121G study on the tax treatment of foreign vs. domestic R&D found that a $650,000 development project managed in the U.S. could deliver over $310,000 more in year-one cash flow compared to using a foreign contractor. That’s money you can reinvest into growth, innovation, and your bottom line.
With 121G, you get more than just development expertise—you gain a financial advantage:
- Immediate Tax Benefits – Full deduction of R&D expenses plus eligibility for federal and state credits.
- Cash Flow Impact – Lower year-one outlay means more working capital available.
- Startup-Friendly – Credits can offset payroll taxes, extending your runway when it matters most.
- Trusted U.S. Partner – Avoid foreign tax complications and work with a domestic team that understands your needs.
121G turns R&D investments into strategic advantages—helping you innovate faster, smarter, and more cost-effectively.