R&D Tax Credit Recovery
The Research & Development Tax Credit is one of the most valuable and underutilized tax incentives available to US businesses. If your company develops new products, improves processes, or creates software, you likely qualify for significant tax savings.
What Activities Qualify?
The R&D Tax Credit applies to a wide range of activities across many industries. If your company is trying to develop or improve products, processes, software, techniques, formulas, or inventions, you likely have qualifying activities.
Developing new software, improving existing applications, or creating custom solutions for clients.
Improving production methods, developing new manufacturing techniques, or automating processes.
Designing new products, improving existing ones, or developing prototypes.
Structural engineering, architectural design innovations, and construction method improvements.
Developing new or improved processes, formulas, or techniques that involve technical uncertainty.
Developing new testing methods, quality assurance processes, or certification procedures.
The Four-Part Test
To qualify for the R&D Tax Credit, your activities must meet the IRS's four-part test. Don't worry if you're not sure whether you qualify – most companies underestimate their eligibility. Our experts will analyze your activities and identify all qualifying expenses.
Permitted Purpose
The activity must be intended to create a new or improved business component (product, process, software, technique, formula, or invention).
Technological in Nature
The activity must rely on principles of physical science, biological science, engineering, or computer science.
Elimination of Uncertainty
The activity must be intended to eliminate uncertainty concerning the development or improvement of a business component.
Process of Experimentation
The activity must involve a process of experimentation to achieve the desired result.
Qualifying Expenses
The following expenses can be included in your R&D Tax Credit calculation:
* Percentages indicate the portion of expenses that qualify for the credit calculation.
Industries We Serve
The R&D Tax Credit isn't just for tech companies. We've helped businesses across dozens of industries recover significant tax credits.
Our R&D Tax Credit Process
We handle the entire R&D Tax Credit process from start to finish, minimizing your time investment while maximizing your credit.
Discovery & Analysis
We review your operations, interview key personnel, and identify all qualifying R&D activities.
Credit Calculation
Our experts calculate your credit using the method that maximizes your benefit (Regular or ASC).
Documentation
We prepare comprehensive documentation to support your credit claim and withstand IRS scrutiny.
Filing & Support
We file your credit claim and provide ongoing support, including audit defense if needed.
Frequently Asked Questions
Get answers to the most common questions about the R&D Tax Credit.
The R&D Tax Credit (Section 41 of the Internal Revenue Code) is a federal tax incentive that rewards companies for investing in research and development activities in the United States. It provides a dollar-for-dollar reduction in tax liability, making it one of the most valuable tax incentives available to businesses.
The federal R&D Tax Credit typically ranges from 6-8% of qualified research expenses (QREs). Many states offer additional credits ranging from 3-15%. For a company with $1 million in qualified R&D expenses, this could mean $60,000 to $80,000 in federal credits alone, plus state credits.
Yes! Startups with less than $5 million in gross receipts and fewer than 5 years of revenue can use the R&D credit to offset up to $500,000 in payroll taxes annually. This makes the credit valuable even for pre-revenue companies.
You'll need to document your R&D activities, including project descriptions, time tracking for R&D personnel, expense records, and evidence of technical uncertainty. We help you establish proper documentation processes and gather the necessary evidence.
Yes! You can amend tax returns for the past 3 years to claim R&D credits you may have missed. Many companies discover significant unclaimed credits when they first engage with us.
Find Out How Much You Could Save
Most companies are surprised by how much they qualify for. Schedule a free assessment and we'll provide a detailed estimate of your potential R&D Tax Credit.