Our streamlined process helps US businesses identify, document, and maximize valuable federal and state R&D tax credits with minimal disruption to day-to-day operations. Get in touch today to see whether your company may qualify.
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The US R&D tax credit is a federal incentive designed to reward companies that invest in innovation, technical development, process improvement and/or software development.
US businesses may qualify if they are engaged in activities that satisfy the requirements under Internal Revenue Code Section 41, commonly referred to as the Four-Part Test: Permitted Purpose – Development or improvement of a product, process, software, or technique, focusing on function, performance, reliability, quality, or cost reduction; Technological in Nature – Based on principles of the hard sciences such as engineering, physics, biology, and computer science; Elimination of Uncertainty – Addressing technical uncertainty related to capability, method, or design; and Process of Experimentation – Systematic evaluation of alternatives to address the uncertainties, regardless of success. Qualification is often broader than expected and applies across a wide range of industries.r technology and involve overcoming scientific or technological uncertainty. Many businesses across sectors such as engineering, manufacturing, software development, construction, life sciences and food production carry out eligible activities. Both profitable and loss-making companies can claim under the relevant scheme, meaning the relief may reduce a Corporation Tax liability or, result in a payable cash credit.
US businesses may qualify if they are engaged in activities that satisfy the requirements under Internal Revenue Code Section 41, commonly referred to as the Four-Part Test: Permitted Purpose – Development or improvement of a product, process, software, or technique, focusing on function, performance, reliability, quality, or cost reduction; Technological in Nature – Based on principles of the hard sciences such as engineering, physics, biology, and computer science; Elimination of Uncertainty – Addressing technical uncertainty related to capability, method, or design; and Process of Experimentation – Systematic evaluation of alternatives to address the uncertainties, regardless of success. Qualification is often broader than expected and applies across a wide range of industries.
Income Tax Credit
For companies generating taxable income, the R&D Tax Credit provides a dollar-for-dollar reduction in federal income tax liability, directly lowering the amount of tax owed. Unlike deductions, which reduce taxable income, this credit offsets taxes payable on a one-to-one basis—making it a highly valuable incentive.
The opportunity is rooted in development activities and costs already embedded in day-to-day operations, rewarding innovation that is already taking place within the business. A well-executed R&D Tax Credit study helps identify and quantify these efforts, bringing visibility to often-overlooked opportunities and converting them into meaningful tax savings—both immediately and over time.
Payroll Tax Offset
Eligible small businesses may elect to apply a portion of the credit against payroll taxes—up to $500,000 per year—providing a meaningful benefit even if the company is not yet profitable. This election allows companies to monetize the credit in real time by offsetting employer-paid payroll tax liabilities (specifically the employer portion of Social Security, and in some cases Medicare), improving near-term cash flow and reducing burn during early growth stages.
Retroactive Claims
If the credit has not been previously claimed, companies may be able to claim it by amending prior tax returns, generally for up to three open tax years. This allows businesses to capture value from prior R&D activities that may not have been identified at the time.
Carryback & Carryforward of Credits
If available credits exceed current-year tax liability, the unused amount generally may be carried back one year and carried forward for up to 20 years, allowing the benefit to be used in future years as taxable income is generated
Businesses may be able to claim credits ranging from 6-14% for certain qualified research expenses that exceed a calculated base amount. These expenses include eligible wages, supplies, computer time sharing fees (e.g., cloud computing) and a portion of contractor costs associated with qualifying activities. Many states offer a similar incentive as well.
A focused, no-obligation assessment designed to quickly identify eligibility and quantify potential value—so you can make informed decisions with clarity and confidence.
Our teams bring together a cross functional team comprised of CPAs / EAs, industry trained engineers, attorneys and seasoned R&D professionals, with partner-level oversight on every engagement—ensuring both technical accuracy and strategic insight.
From initial scoping through calculation, documentation and preparation of our “audit ready” deliverable, we manage the entire process—minimizing internal lift by your resources and CPA firm, while maximizing outcomes.
Our structured methodology is built in alignment with IRS expectations, emphasizing clear, consistent, and well-documented support to stand up under both IRS and state taxing authority scrutiny.
Sales and an R&D specialist will lead a focused discussion to understand your business, operations, and development activities. The goal is to quickly determine qualification potential, while identifying where value exists within your current operations. During this session, we will also walk through our process—designed to be streamlined, minimally disruptive, and efficient for your team—so you have full visibility into how the engagement will be executed.
Our team of specialists perform a detailed analysis to identify and quantify all eligible costs associated with your R&D activities. This ensures the credit is both accurate and fully optimized. Beyond capturing current-year benefits, we take a forward-looking approach—identifying opportunities within your operations that can enhance and sustain larger claims in future years, while also evaluating retrospective opportunities where applicable.
Our Technical Specialists and industry trained engineers conduct targeted interviews with key personnel to evaluate qualifying activities against IRS criteria. These discussions are structured and efficient—typically completed in one hour or less—while still capturing the depth needed to support a defensible position. In parallel, we gather and align relevant documentation to strengthen the claim. The result is a comprehensive, audit-ready technical narrative that clearly supports eligibility and methodology.
Once all qualifying activities and costs are established, our Tax Advisors calculate the credit using the most advantageous methodologies available at both the federal and state levels. We prepare all required forms, schedules, and supporting documentation, and coordinate closely with your tax preparer to ensure a seamless filing process. Beyond filing, we remain engaged—providing ongoing guidance to help you capture value consistently and efficiently in future years.
