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R&D Tax Credits


Our Approach

Federal and state research and development (R&D) tax credits can be applied to a company’s efforts to design, develop or improve a product or process, and the process of experimentation undertaken as part of those activities. Amounts paid for salaries, supplies, contract research and computer leasing can qualify for the R&D tax credit, and recent changes in government regulations mean more industries now qualify for these credits.

However, documenting R&D activities in a way that meets the stringent requirements of the IRS and state tax authorities isn’t easy. As a result, we find many firms don’t receive the R&D tax credit they deserve—or don’t qualify for an R&D tax credit at all.

Even if your company isn’t currently in the position to utilize the credit, R&D costs can be carried forward to offset tax on future profits, and the R&D tax credit can be claimed retroactively by filing amended returns for the past three years.

Our R&D tax credit experts can work with your internal team to help you identify and effectively document qualified R&D activities. This close collaboration helps reduce your risk of not qualifying for this important tax credit.

Services

Depending on the needs of your organizations, we can provide varying service level options (i.e., full-scope analysis, limited-scope analysis, calculation or documentation only and reviews) for the following:

Sec. 41 Research Credit (R&D) Analysis

  • Identify and determine qualified research activities and related expenditures
  • Calculate available federal and state R&D tax credits 
  • Document qualified research activities and expenditures with contemporaneous records for substantiation

Sec. 199 Domestic Production Activity Deduction (DPAD) Analysis

  • Identify and determine Domestic Production Gross Receipts (DPGR) and expenses/losses/deductions allocable to DPGR for Qualified Production Activities Income (QPAI)
  • Calculate DPAD

Experts

Resources

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If you are a qualified small business, subject to limits, you can elect to apply all or some of any research tax credits that you earn against your payroll taxes instead of your income tax.

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