Typically, 6% to 8% of business’s annual eligible costs related to research activities can be applied, dollar for dollar, against it’s federal income tax liability. Qualifying expenses include a portion of salaries, supplies, contract research and cloud hosting. If there is a lack of tax liability, unused R&D credits can be carried forward up to 20 years. Federal taxpayers can also claim the R&D credit retroactively by filing amended returns for open tax years, generally the past three (or more if the company endured losses during that time).