Cyber breaches are becoming more prevalent, causing organizations to prioritize their security and take a comprehensive approach towards data protection. According to Forbes, more than 4.1 billion records were compromised in the first six months of 2019. As businesses are starting to invest more in security, they must take advantage of every incentive available towards utilizing and integrating cybersecurity technology: one of them is the Research and Development (R&D) Tax Credit.
R&D Tax Credits are offered globally, and can be applicable to various industries, including cybersecurity research and development. Examples of day-to-day cyber activities that can qualify for the R&D Tax Credit:
Cutting edge algorithm development
Malware threat analysis
Ethical hacking & penetration testing
SOAR (Security Orchestration, Automation Response)
Platform updating and 3rd party integrations
Here at Leyton, we prioritize building relationships with our clients to assist them in receiving their maximum benefit from the R&D Tax Credit. As expected, we work with companies in industries traditionally rich in R&D, such as pharma, biotech, and manufacturing, but some of our most rewarding work comes from supporting niche industries in the US. We are thrilled to share yet another exciting industry connection we have made: the ever-innovating cybersecurity world.
We had the pleasure of speaking with Dr. Ed Amoroso, TAG-Cyber’s CEO. TAG-Cyber provides world-class cybersecurity research, advisory, and consulting to enterprise security teams around the globe. Though initially skeptical, Dr. Amoroso was curious to learn more about how the credit applies to cybersecurity firms. Amoroso’s doubt is not atypical; most of the companies we speak to find it hard to believe that they are entitled to a government incentive for developing or improving their product or service, something they would be doing anyway.
“It’s almost too good to be true,” Amoroso joked. He was surprised that his CPA, with whom he’s worked with for 30 years, never mentioned the credit. Amoroso shared in our passion, concluding a blogpost regarding our conversation with:
“I am willing to offer my strong recommendation that you reach out to Leyton, and to Taylor Kotas, in particular. She offered clear explanations and reasonable answers to my snarky questions,” Amoroso said.
“Bottom line: If you are a cybersecurity technology company located in the US, then you should ensure that your finance team is making good decisions about whether you qualify for the R&D Tax Credit!”
At Leyton, we consider ourselves to be a consulting firm, not only set on maximizing the credit, but also raising awareness of the credit and working with you to establish the best strategy for your business to reap the full benefit. Being client-centric, we value transparency in our education process, and this connection with TAG-Cyber is just one of many relationships we are proud to have built. We look forward to the opportunity to educate more companies in the cybersecurity sector and to forge more relationships with clients and partners alike.