R&D Tax Credits

Get Paid for Innovation
You're Already Doing.

The Research & Development Tax Credit is a dollar-for-dollar federal tax credit — and most businesses that qualify have no idea they're eligible. If your team solves problems, develops processes, or improves products, you likely qualify.

7–10% Credit on Qualifying R&D Spend
$1 for $1 Dollar-for-Dollar Tax Reduction
3 Years Retroactive Claims Available

A dollar-for-dollar credit
hiding in plain sight.

The Research & Development Tax Credit (IRC Section 41) was created by Congress to reward American businesses for investing in innovation. Unlike a deduction — which reduces your taxable income — a tax credit reduces your actual tax bill dollar for dollar.

The credit equals 7–10% of your qualifying R&D expenditures, including wages paid to employees working on qualifying activities, contractor costs, and supply expenses. And it's not just for tech companies — businesses in manufacturing, construction, food & beverage, agriculture, and dozens of other industries qualify every year.

  • Non-refundable — but never lost The R&D credit reduces your tax bill dollar for dollar. It won't generate a refund check, but any unused credit carries forward for up to 20 years.
  • Claim up to 3 years retroactively You can amend prior-year returns to capture credits you missed — significant catch-up potential for most businesses.
  • Startups can apply it against payroll taxes Qualifying businesses with less than $5M in gross receipts can apply up to $500K per year directly against payroll taxes — even with no income tax liability.

What Counts as R&D?

Wages
Salaries and wages paid to employees directly involved in qualifying R&D activities — typically your largest credit driver.
Supplies
Tangible supplies consumed or used in the R&D process — materials, prototypes, testing components.
Contractors
65% of payments to outside contractors performing qualifying R&D on your behalf.

R&D credits aren't just
for tech companies.

If your business develops, improves, or experiments — in any industry — there's a good chance you qualify for the R&D Tax Credit.

🏗️

Construction & Engineering

Custom design work, value engineering, new construction methods, and building system innovations all qualify.

🏭

Manufacturing

Process improvements, new product development, tooling design, and automation implementation are common qualifying activities.

💻

Software & Technology

Custom software development, new algorithms, platform architecture, and application development all qualify.

🍽️

Food & Beverage

New recipe development, packaging improvements, shelf-life testing, and production process optimization qualify.

🌾

Agriculture

Crop yield improvement, new growing techniques, irrigation innovation, and equipment modifications qualify.

🔬

Life Sciences & Medical

Medical device development, pharmaceutical research, clinical process improvements, and diagnostic tool innovation qualify.

How We Identify and Claim Your Credits

1

Free Eligibility Assessment

We review your business activities at no cost and give you a realistic estimate of your qualifying R&D spend and potential credit.

2

Activity & Expense Analysis

We work with your team to identify qualifying projects, document the technical uncertainties involved, and calculate eligible expenses.

3

Study & Documentation

We produce a complete, IRS-defensible R&D credit study with all required documentation — ready for your CPA to file.

4

Credits Applied

Your CPA files the credit. You see the savings on your current-year return — or we amend prior years to capture retroactive credits.

The 4-Part Test for Qualifying Activities

The IRS uses a four-part test to determine whether an activity qualifies for the R&D Tax Credit. We evaluate every activity against this standard.

1

Permitted Purpose

The activity must relate to developing or improving the functionality, performance, reliability, or quality of a business component — a product, process, software, technique, formula, or invention.

2

Technological in Nature

The activity must rely on principles of engineering, physics, biology, chemistry, or computer science — not just business or financial expertise.

3

Elimination of Uncertainty

The activity must be intended to discover information that eliminates technical uncertainty about the capability, method, or design of a component.

4

Process of Experimentation

The activity must involve a systematic process of evaluating alternatives — testing, modeling, simulation, or trial and error — to resolve the uncertainty.

Find out if your business qualifies — at no cost.

Most businesses that qualify for R&D Tax Credits have been leaving money on the table for years. Let us take a look — no commitment required.