R&D Isn't What You Think
When most people hear "R&D tax credit," they picture scientists in white coats or billion-dollar research labs. The reality is very different.
The federal R&D tax credit was designed to reward businesses that invest in innovation and innovation happens in far more places than laboratories. If your company develops new products, improves existing processes, builds software, or solves technical problems through trial and error, you may have qualifying activities.
It's Not Just Tech and Pharma
To qualify for the R&D tax credit, your activities must meet a four-part test established by the IRS. Here's what each part means in plain English.
01
Permitted Purpose
Your work must aim to create or improve a product, process, software, technique, formula, or invention.
02
Technological in Nature
The work must rely on principles of engineering, computer science, physical science, or biological science.
03
Elimination of Uncertainty
There must be uncertainty about the capability, method, or design when you begin the work.
04
Process of Experimentation
You must evaluate alternatives through testing, modeling, simulation, or systematic trial and error.
You Don't Need a Lab to Qualify
The R&D tax credit isn't just for tech giants and pharmaceutical companies. If your business develops new products, improves processes, or solves technical challenges, you may have qualifying activities.
Architecture & Engineering
Aerospace & Defence
Food & Beverage
Life Science & Biotech
Construction
Agriculture
Manufacturing
SOftware & Technology
Other Industries
Activities That Don't Qualify
Not everything counts toward the R&D credit. Here's what the IRS excludes
01
Research conducted outside the United States
Only domestic R&D activities qualify for the federal credit.
02
Research funded by grants or contracts
Only domestic R&D activities qualify for the federal credit.
03
Research after commercial production begins
Only domestic R&D activities qualify for the federal credit.
04
Adaptation of existing products for a specific customer
Only domestic R&D activities qualify for the federal credit.
05
Routine data collection and quality control
Only domestic R&D activities qualify for the federal credit.
06
Cosmetic or style changes
Only domestic R&D activities qualify for the federal credit.
Mark the boxes that match your work. We'll show you if R&D credits are within reach.
Worth a Conversation
You may still have qualifying activities we can uncover. Every business is different, and nuances in your workflow could reveal significant credits.