R&D Tax Credit Services


Innovation is the lifeblood of any economy and research and development (R&D) is critical to innovation. Since 1981, the Federal R&D Tax Credit has been meant to incentivize innovation within the United States…and much more! In fact, 2003 IRS regulations replaced a “discovery test” with much broader requirements in order to qualify for the credit. Now, when a US company is trying to develop a new or improved product, process, technical design or software, it no longer needs to be new to its industry in order to qualify; it only needs to be new to them.

Companies claim billions of dollars of Federal and State R&D Tax Credits each year. However, billions of dollars of R&D credits go unclaimed each year because companies are not aware that they qualify. In addition, many companies that are taking the credit are not claiming all of the credits to which they are entitled.

Now a permanent fixture of the Internal Revenue Code, the R&D Tax Credit is a significant and immediate source of cash for companies of all sizes and in most industries.

Qualifying Industries

Some of the industries that qualify for the credit include manufacturers (high and low tech), tool and die/job shops, software developers, plastic mold injection companies, architectural and engineering firms, mechanical and electrical contractors, food processors, apparel/textile companies, the oil and gas industry, pharmaceutical companies, agribusiness and chemical companies, among others.

Recent Enhancements to the Credit

Beginning in 2016, there were also two significant enhancements to the Federal R&D Tax Credit involving the credit’s utilization:

  • Companies with less than $50 million in gross receipts (prior 3 year average) can now use Federal R&D tax credits to reduce Alternative Minimum Tax (AMT). This is very significant, especially for flow-thru entities, whose owners are in or close to AMT each year.
  • “Start-up companies” (companies with less than $5 million of gross receipts for the year and with no gross receipts more than five years ago) can now use their Federal R&D tax credits to reduce a significant portion of their Federal payroll taxes.

Our Team

Our R&D Tax Credit experts, made up of attorneys, engineers and CPAs, conduct a thorough and yet non-evasive analysis into a company’s operations to identify all qualifying R&D credit activities and related expenditures in order to maximize the company’s R&D credits.

Contact us to learn more

Phone: (714) 434-6700
Fax: (714) 640-8645

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