Monetizing Innovation
Specialized R&D Tax Credit & Other Important Tax Credits
Expert application and documentation to maximize federal and state Research & Development (R&D) tax credits, transforming innovation expenses into immediate cash flow and substantial tax savings.
Capturing Cash Flow Hidden in Innovation Expenses
R&D Tax Credit Study & Calculation: We apply the Four-Part Test to every activity and interview key personnel to define the scope, leading to a precise calculation of the available R&D tax credit, to maximize federal credit claims by identifying all eligible Qualified Research Expenses (QREs) across W-2 wages, supplies, and contract research.
Look-Back & Amended Returns: We execute a retrospective study of prior years' expenses and file amended tax returns (Form 3115 and 1120X/1040X) to secure past credits.
Other Important Tax Credits: We assess client eligibility for a broad range of federal and state incentives based on hiring, location, or capital investment and manage the complex application process, access to valuable, often overlooked incentives (e.g., Work Opportunity Tax Credit, FICA Tip Credit, Energy Credits, ERTC) to further reduce tax liability.
FAQs
Q: We are a software company, not a manufacturer. Do we still qualify for the R&D Credit?
A: Absolutely. Qualifying activities include developing new or improved software for internal use, process automation, or client-facing applications. The credit focuses on the process of experimentation to resolve technical uncertainty, regardless of the industry.
Q: We are currently unprofitable. Can we still benefit from the R&D credit?
A: Yes. Qualified small businesses can elect to apply up to $250,000 of the credit against their payroll tax liability rather than income tax. This makes the credit immediately valuable even if you are pre-revenue or currently operating at a loss.
Q: What specific expenses qualify as Qualified Research Expenses (QREs)?
A: QREs are limited to three types: W-2 wages paid to employees directly conducting or supervising research, the cost of supplies used in the research process, and payments made to third-party contract researchers.
Testimonial
This firm found a significant six-figure R&D tax credit. That cash infusion was non-dilutive capital that allowed us to hire four new software engineers and accelerate our product development without giving up equity." — Win Liu, CEO of Sharp Vision Software LLC, a regional Information Technology Firm