R&D Tax Credits for the Gaming Industry
The gaming industry, a booming sector projected to exceed $300 billion by 2025, fosters unrivaled realism, diverse experiences, and endless entertainment. From casual mobile gamers to dedicated streamers, the industry caters to everyone. This explosive growth has reshaped the landscape for studios of all sizes. Small teams now compete with giants and offer a vast array of gaming choices and platforms.
However, game development involves significant cost and risk, especially for smaller studios. R&D tax credits can be a game-changer, providing crucial financial support to fuel innovation.
Here's how the gaming industry qualifies:
- Technical and financial risks: The very nature of game development aligns with R&D criteria.
- High-level talent: Salaries of internal and external developers are considered qualified research expenses (QREs) – a substantial portion of most gaming companies' investments.
By recognizing the R&D opportunities within their operations, gaming companies can unlock substantial tax savings and fuel their ongoing journey and innovation.
$250,000
R&D Tax Credit Qualification for Game Development
One of the challenges of development when it comes to blockchain and cryptocurrency is that it is still in its relative infancy. Most developers do not have the types of resources available to development teams working on traditional software and platforms. As such, when this company started its work much of it was from a blank slate. This started with the development of their alpha model. Their first model for predicting market movement was based on analysis and identification of signals in the data they were receiving in real-time from the various exchanges that represented larger market trends.
R&D Tax Credits with GOAT.tax
With our consultative approach to the research and development tax credit, we invest time understanding each client’s history, current business direction, and future growth objectives. Each year we re-evaluate a company’s ability to accept the tax credit and provide on-going recommendations to improve the R&D tax credits process.