My start-up is not profitable, do I still qualify for the R&D credit?

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Yes, profitability does not affect qualification. However, if you are not profitable, you either A) have to qualify as a small business start-up to apply the credit against your payroll taxes, or B) carryforward the credits until you have regular tax liability. The qualification for small business payroll tax offset is less than five (5) years of gross receipts history, and less than $5MM in gross receipts during the tax year in which the credit is being claimed.

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