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Reducing tax liability for businesses across every industry.

 R&D Tax Credit

Federal and State Dollar-for-Dollar Income Tax Reduction

Receive up to 15 cents of R&D tax credits for every qualified dollar

Reduce Your Effective Tax Rate

Carry the credit forward for up to 20 years

Perform a look back study to claim unclaimed R&D credits in prior years

Utilize the federal R&D tax credit against payroll tax (applicable to certain startups)

Engineering Class

The Research and Development Tax Credit (R&D Tax Credit) was enacted in 1981 to incentivize for American innovation. In 2015 the Protecting American from Tax Hikes (PATH) Act was passed, which not only extended the benefit to startups, but also made the R&D tax credit permanent.

Any US company that designs, develops, or improves products, processes, techniques, formulas or software may be eligible for a dollar-for-dollar reduction of  past, present, and future tax liability via the R&D Tax Credit.

Examples of Qualified R&D Industries


Architecture & Engineering




Food & Beverage



Software Development

Winery & Viticulture

Examples of Qualified R&D Activities

  • Developing an innovative product that is new to the market

  • Engineering and designing a new product

  • Research aimed at discovering new knowledge

  • Searching for ways to apply new research findings

  • Designing product alternatives, evaluating product alternatives

  • Significant modifications to the concept or design of a product

  • Designing, constructing, and testing pre-production prototypes and models

  • Engineering activity to advance the product’s design

  • Systems processing modeling, system and functional requirements analysis, integration analysis

  • Experimenting with new technologies, new material and integrating the material to improve manufactured products

  • Engineering to evaluate new or improved specification/modifications in terms of performance, reliability, quality, and durability

  • Developing new production processes during prototyping and pre-production phases

  • Research aimed to significantly cut a product’s time-to-market, aimed to obtain more efficient designs

  • Developing and modifying research methods, formulations, products

  • Paying outside consultants, contractors to do any of the above activities

The Four-Part Test

To be eligible for the credit, your company's R&D activities must meet the IRS Four-Part Test:

Permitted Purpose

To satisfy this test, the purpose of the R&D should be to apply the information discovered to develop a new or improved business component. An improved business component can include a product, process, software, or formula which is to be used internally or offered for commercial purposes. Practically speaking this includes new or improved functionality, performance, reliability, or quality of a product, process, etc.​

Elimination of Uncertainty

To satisfy this test, it is necessary to illustrate activities were intended to discover information that could eliminate technical uncertainty about the design, methodology, or capability of development or improvement of a product or process.

Process of Experimentation

To satisfy this test, the business must be able to demonstrate there was a process used which included the evaluation of alternatives to achieving the desired outcome. Examples may include ongoing testing, modeling, simulation, and systematic trial and error.

Technological in Nature  

To satisfy this test, the process of experimentation used to discover the information must rely on principles of the physical or biological sciences, engineering, or computer sciences. This ensures that any new information uncovered used a scientifically and approved process and not through other methods.

Estimate your R&D Credit by using our free calculator:

R&D Tax Credit Calculator

Your benefits estimate is on the way!

Our team of professionals specializes in identifying and claiming R&D tax credits for businesses of all sizes in a myriad of industries. Our expert guidance and personalized approach ensure that your company receives the maximum benefit from the R&D Tax Credit. We understand the complex regulations and requirements and can help you navigate the process with ease.

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