R&D Tax Credit Services

Your day-to-day operations could provide untapped opportunities to access extra cash and reduce your business’ income tax liability, thanks to research and development (R&D) tax credits.

R&D credits regularly deliver savings to businesses that design, develop, or improve products, processes, techniques, formulas, or software—helping put cash back into the business.

Tax refunds can exceed 10% of annual R&D costs for federal credits and even higher when applying state-level credits. Claiming credits can be a complex process that involves intense IRS scrutiny, so it’s crucial to navigate submissions meticulously.

Ways to Put Your Money Back to Work

R&D credits are expense-driven—the more you spend on R&D, the more credits you can generate.

Explore some of the ways your business can benefit from your current R&D spending.

Assess Multiyear Options

R&D credits can be claimed on original tax returns, and the statute of limitations could allow your business to claim credits for previous tax years. Credits can be:

  • Realized on the original tax return for the current year
  • Claimed on amended tax returns for previous years

Unused credits are generally carried back or forward to subsequent years. Evaluating your individual tax situation over multiple years is essential for increasing the potential benefit.

Offset Payroll Tax

Startups can especially benefit from R&D credits because credits can offset payroll taxes.

You may apply the federal R&D tax credit against your payroll tax for up to $250,000 in savings if the following are both true:

  • You’ve generated gross receipts for five years or less
  • Your current-year gross receipts are less than $5 million

Learn more on our R&D Credits: Offset Payroll Tax page.

Counter Alternative Minimum Tax

Many small to midsize businesses can reduce their alternative minimum tax (AMT) thanks to R&D credits.

If your business averaged $50 million or less in gross receipts over the past three years, you may claim the federal R&D tax credit against AMT liability.

Navigate IRS and State Exams

Taxing authorities scrutinize R&D credit and deduction claims because the incentives save taxpayers billions of dollars each year.

Confidently respond to any government questions and requests that may arise as we guide you every step of the way. Our professionals have extensive experience in both audit and appeals stages related to R&D tax issues and have successfully defended hundreds of previous claims.

How the Process Works

To be eligible for the credit, R&D activities must meet IRS criteria known as the four-part test.

Complimentary Benefits Estimate

Receive a preliminary estimate of your potential tax savings from R&D by filling out our complimentary benefits estimate request form.

Industry-Focused Insights and Expertise

Your engagement team will include professionals from a range of backgrounds—such as CPAs, attorneys, enrolled agents, and engineers—who understand your industry and customize our approach to fit your company’s unique needs.

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Featured Resources

Explore insights to help determine what credits might be available to your business.

Credits by Industry

From specific products and equipment to work site and infrastructure, every industry has its own R&D opportunities. Explore common expenses specific to your sector.

Dive deeper into R&D tax credit opportunities for select industries here.

  • Generating prototypes for testing and validation
  • Developing new machines, fixtures, jigs, and tools for aircraft manufacturing and assembly
  • Developing engineering designs or kits for integration of new monuments, galleys, seats, and inflight entertainment systems (IFS) into an aircraft
  • Designing and developing new or improved aircraft monuments and components
  • Developing new or improved manufacturing processes—such as computer numerical control (CNC) machine programs and manufacturing plans—to build aircraft components with stringent specifications or tight tolerances
  • Hybridizing during the development of new strains of crops, plants, or livestock
  • Improving harvesting techniques to increase yield or production efficiency
  • Developing or implementing automated processes
  • Developing or implementing new ways to protect crops from disease or insect pests
  • Developing and implementing new irrigation systems
  • Developing new or improved packaging processes
  • Developing new clothing innovations that could be eligible for utility patents
  • Designing and developing product and performance specifications for new fabric and material construction technologies
  • Developing new manufacturing processes
  • Manufacturing, evaluating, and testing samples and prototypes
  • Developing new software that allows customers to view inventories, make purchases, and track merchandise online using web or mobile applications
  • Designing new or improved manufacturing processes to increase production efficiency or component quality
  • Developing aftermarket performance products
  • Researching improved materials for component parts, such as polymers, alloys, and composites
  • Designing and developing vehicle performance improvements, such as for fuel efficiency and handling
  • Making improvements to automotive components, for example, to increase durability or safety
  • Pursuing advances in products, materials, and processes to increase efficiencies in energy generation or transmission
  • Designing and developing hydroelectric facilities and systems
  • Designing and developing utility-scale wind generation technologies
  • Development of alternative fuels and biofuels
  • Development of waste treatment and remediation processes or technologies
  • Designing and developing new or expanded network architecture and technology
  • Designing and construction of physical networks, including copper and fiber-optic network data cabling and wiring
  • Developing telecommunication networks to serve customers; for example, integrating voice, message, or voice-over-IP (VoIP) capabilities into a web or mobile application
  • Developing software and technology to improve transmission capacity
  • Developing network tools to monitor and measure network performance
  • Designing unique, energy-efficient or sustainable infrastructure building systems
  • Designing innovative methods to construct wastewater treatment technologies or bridge or roadway structures
  • Developing innovative wastewater treatment technologies
  • Designing renewable energy infrastructure
  • Developing new or improved construction techniques
  • Developing new product flavors, appearances, textures, or health benefits
  • Developing methods to extend shelf life
  • Developing new or improved manufacturing technology, processes, and procedures to increase yield, reduce waste and by-products, improve safety, or reduce labor
  • Producing prototype product samples for testing and validation of new recipe formulations
  • Designing and developing specialized tools or prototype tooling and machines
  • Developing new or improved quality assurance testing processes
  • Developing new or improved waste recycling
  • Developing improved sustainability initiatives to reduce emissions
  • Developing processes to decrease deforestation
  • Developing new or improved automated process
  • Functional enhancements and new capabilities for existing applications, designed to create a competitive advantage
  • Software to better manage customer relationships through improved collection, storage, and analysis techniques
  • Developing new medical products, devices, equipment, or technology as well as next-generation products and product improvements
  • Testing to satisfy domestic and foreign regulatory requirements
  • Developing new or improved pharmaceuticals, devices, or diagnostics
  • Developing new or improved pharmaceuticals, devices, or diagnostics
  • Developing production processes for new products
  • Manufacturing experimental clinical trial lots of pharmaceuticals
  • Developing or improving drug formulations to reduce side effects or dosage
  • Developing new medical products, devices, equipment, or technology, as well as next-generation products and product improvements
  • Engineering and designing new products and processes
  • Improving the design of existing products
  • Improving manufacturing or production processes
  • Developing special tooling and equipment used in the manufacturing process
  • Designing, building, and testing prototypes
  • Computer-aided design (CAD) and building information modeling (BIM) activities
  • Performing scientific calculations to determine the physical properties of materials in various environments
  • Designing and developing new and innovative Leadership in Energy and Environmental Design (LEED), energy-efficient, or green systems and structures
  • Designing and developing new or improved infrastructure projects, such as bridges, dams, subsurface tunnels, and rail systems
  • Designing and developing new or improved heating, ventilation, and air conditioning (HVAC), building envelope systems, and mechanical systems
  • Researching appropriate materials to account for weight, strength, durability, texture, and cost
  • Designing, modeling, prototyping, fabrication, and installation of exhibits, displays, and mannequins
  • Designing and developing retail fixtures, including displays, lighting, and shelves
  • Development of new attachment methods or techniques
  • Engineering of new assembly and installation methods
  • Developing code for new software architecture or algorithms
  • Developing functional enhancements and new capabilities for existing applications, designed to create a competitive advantage
  • Developing flexible, high-quality, and scalable rule engines to manage and automate complex business structures and models
  • Developing specialized technologies, such as artificial intelligence or voice recognition applications
  • Developing new software applications to use internally, or to interact with customers or vendors
  • Developing new or improved fermentation and distillation processes
  • Developing or implementing automated processes
  • Developing new or improved bottling and packaging processes
  • Designing and developing improved fermentation or bottling equipment
  • Developing new or improved product formulations

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