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RGeneralUpdated 2 Nov 2026

Research and development tax credit

Government incentive that reduces taxes for companies investing in R&D activities.

Definition

Research and development tax credit is the government incentive that reduces taxes for companies investing in R&D activities. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.

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In the room

How the word shows up in a real conversation.

Two cofounders disagree until they define Research and development tax credit. Once they agree it means “Government incentive that reduces taxes for companies investing in R&D activities”, the argument becomes a decision.

Common mistake

Using Research and development tax credit as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.

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