Research & Development Tax Credits

Most businesses perform R&D without ever claiming the credits they're owed.

The federal R&D Tax Credit is worth millions to qualifying businesses each year. We identify eligible activities you're already doing and claim the credit you've earned.

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Did you know? The federal R&D Tax Credit (IRC Section 41) was made permanent in 2015 — it's a dollar-for-dollar credit against tax liability, not just a deduction. Most qualifying businesses have never claimed it.

R&D Tax Credit: Myth vs. Fact

Many business leaders dismiss the R&D credit because of common misconceptions. Here's what you actually need to know.

Myth

"Only tech and pharma companies qualify"

Fact

Any industry—manufacturing, food, construction, engineering, agriculture, medical devices—qualifies if you're developing, improving, or customizing products or processes.

Myth

"We need a formal R&D department"

Fact

You don't need a separate R&D team. If your existing staff (engineers, developers, technicians) are developing or improving products/processes, that activity qualifies.

Myth

"Failed projects don't count"

Fact

Failed experiments and abandoned projects are eligible. The credit applies to the process of attempting innovation, not just successful outcomes.

Myth

"We're too small to bother"

Fact

Credits range from tens of thousands to millions annually depending on R&D spend. Even small businesses with strong R&D activity capture meaningful credits.

The R&D Credit Opportunity

$12B+

Claimed Annually by U.S. Businesses

3 Years

Retroactive Claims Typically Available

6–8%

Typical Credit Rate on Qualifying Spend

$0

Contingency — No Credit, No Fee

Qualifying R&D Activities

The IRS looks for activities where you're trying something new, facing technical uncertainty, and investing in development. These are common examples.

Product Dev

Developing New Products

Designing, engineering, and prototyping new products from concept through commercialization. Includes feasibility studies and design iterations.

Improvement

Improving Existing Products/Processes

Enhancing performance, efficiency, durability, or cost of established products or manufacturing methods through technical experimentation.

Engineering

Custom Engineering & Design

Developing custom solutions, architectural designs, or engineering approaches tailored to specific client or operational needs.

Software

Software Development

Building custom applications, platforms, or tools. Includes integrations, debugging complex technical issues, and algorithm optimization.

Formulation

Formulation & Recipe Development

Food, beverage, chemical, cosmetic, or material formulation development involving testing and iteration to achieve specifications.

Innovation

Construction & Architecture Innovation

Developing new building methods, materials, safety features, or design approaches that involve technical uncertainty and experimentation.

How We Identify and Document Your R&D Credit

The R&D credit is powerful, but documentation is critical. The IRS carefully reviews claims. We ensure every dollar is defensible with technical records, contemporaneous documentation, and substantiation that withstands audit.

1

Free Eligibility Assessment

We review your operations, projects, and team roles to identify potential qualifying activities.

2

Activity & Expense Identification

We work with your team to document specific R&D projects, time spent, materials, and wage/contractor spend.

3

Technical Documentation

We prepare a technical report substantiating each activity's qualification and allocating qualified expenses.

4

Credit Calculation & Return Filing

We calculate the credit (6–8% of qualifying wage and material spend) and file Form 6765 and amended returns if claiming retroactively.

5

Ongoing Annual Strategy

We establish documentation practices to ensure all future qualifying activities are captured and properly supported.

Industries We Serve

The R&D credit spans virtually every industry. Here are sectors where we've identified and claimed significant credits.

🏭
Manufacturing
🍔
Food & Beverage
💻
Software & Tech
🏗
Engineering Firms
🏢
Construction & Architecture
🧬
Life Sciences & Biotech
Chemical & Materials
🌾
Agriculture & AgTech
🚗
Automotive & Aerospace
Product Design & R&D
Medical Devices
Energy & Clean Tech

Frequently Asked Questions

Can I claim the R&D credit for years I didn't file originally?
Yes. You can file amended returns (Form 1040-X for individuals, 1120-X for corporations) for typically 3 years back. For calendar year 2023, you can claim 2020, 2021, and 2022. This allows you to recover credits you missed in prior years.
How much of my R&D spending qualifies?
Qualifying expenses include wages of employees doing R&D work, cost of materials used in development, and contractor/outsource fees. The credit is typically 6–8% of qualifying spend. Not all of your R&D budget qualifies, but most development activity does.
What if I outsource development work?
Outsourced R&D qualifies, but at a different rate (typically lower) than in-house work. You can still claim the credit on contractor/vendor fees for development work. Consulting and design firms often have large R&D credits from outsourced work.
Will the IRS challenge my R&D credit claim?
The IRS does scrutinize R&D claims. That's why documentation is critical. We prepare thorough technical reports, activity summaries, and wage allocations that substantiate the claim. With proper documentation, audits are resolved favorably.
How long does it take to get my credit refunded?
Amended returns (Form 1120-X) typically process within 4–6 months, though they can take longer. Current-year claims filed on your original return are processed with your tax return (usually 3–4 weeks for e-filed returns). We handle all follow-up on pending refunds.
What documentation do I need to have?
You should have project notes, lab reports, timesheets, meeting minutes, email discussions about technical challenges, test results, and design iterations. We'll work with what you have and help you gather additional documentation from your team to build a defensible claim.

Claim Your R&D Credit Today

Answer a few quick questions and our R&D tax credit specialists will reach out to review your company's qualifying activities — no cost, no obligation.

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