Designed to spur innovation, establish new industries and grow knowledge economies, the R&D Tax Credit is your startup’s engine for innovation. Enhanced by the PATH Act of 2015, the R&D credit allows your company to offset up to $250,000 of payroll tax liabilities per year for five years. This can be a pivotal tax incentive for a startup company that has generated no or minimal income tax liabilities. If your company is involved in applied research, or practical and technical problem solving, then you might be eligible to offset your tax liability with this credit.