The federal RD tax credits assist both large and small businesses in almost every industry. The following are frequently asked questions and answers on the R&D tax credit, as well as those unique to small enterprises.

The R&D tax credit was enacted in 1981 to promote research and development (R&D) inside the United States of America. The enactment of RD tax credits provides a dollar-for-dollar reduction to federal income tax liabilities and, in some cases, payroll tax obligations.
The majority of states also give a comparable credit, bringing the combined positive impacts of the federal and state credits to between 10% and 20% of eligible spending. Businesses in nearly every industry reported over $18 billion in R&D credits last year.
The R&D credit is equivalent to the total of two types of costs: qualified research expenses (QREs) including basic research payments (BRPs).

Source: https://www.entrepreneurshipsecret.com/rd-tax-credits/