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Research & Development Tax Credit

Offset your tax liability with the day to day activities of your business.

Receive a Free R&D
Eligibility Assessment

R&D ASSESSMENT_Landing

or call 205-203-8097

The innovations your company is working on may be eligible for lucrative tax credits. 

The Research and Development (R&D) Tax Credit is a $18B government incentive offered to companies who create or improve products or processes in the course of their business.

The Federal R&D tax credit is available to US businesses that develop or improve new products, processes, software, formulas, or business components. Additionally, over 30 states offer R&D credits to offset state tax liability.

R&D Tax Credits increase your profitability by reducing, current and future years’ federal tax liability and creating a ready source of cash for furthering innovation and growing your business. These credits provide a dollar-for-dollar offset against taxes owed or paid, which differs from a deduction.

INNOVATION & EXPERTISE:

OUR R&D EXPERTS MINE YOUR BUSINESS ACTIVITIES FOR & LUCRATIVE TAX CREDITS

Despite originally only applying to a few highly technical companies, the R&D Tax Credit was made permanent by the PATH ACT of 2015 and the definition of the credit expanded, allowing a wider range of businesses and industries to qualify for this significant valuable federal tax credit.

If your company is creating new products, or improving existing products or processes, there is a strong likelihood you are eligible for the R&D Tax Credit.
In addition to the federal credit, many states offer tax incentives for companies pursuing innovation within their industry. Pre-revenue companies and start-ups with less than five years of revenue can use the federal R&D tax credits to offset future payroll taxes.

OnCentive's team of credit experts, CPAs, and tax lawyers can help your business explore your Research & Development eligibility. At OnCentive, we work on a flexible value-based fee structure, offer complete audit support and a money-back guarantee.


$250,000 

POTENTIAL CASH SAVINGS  PER YEAR AGAINST FEDERAL FICA PAYROLL TAXES

$14.8B

IN R&D CREDITS
CLAIMED ANNUALLY

42%

OF R&D CREDITS CLAIMED ARE BUSINESSES WITH LESS THAN $5 MILLION IN REVENUE

WHO QUALIFIES for R&D?

INNOVATORS OF ALL KINDS

Numerous kinds of businesses qualify for the R&D tax credit,  yet many are unaware of their eligibility. Industries that frequently benefit from this credit encompass software, biotech, manufacturing, and many more. Don't rule yourself out; allow our skilled team of tax attorneys and R&D specialists to maximize the substantial tax credit available to your business.


Software & Technology - 55% average of business expenses that typically qualify


Manufacturing - 28 % average amount of total business expenses that typically qualify


Architecture & Engineering -  36% average amount of total business expenses that typically qualify

Frequently asked questions:

FAQ: Research & Development Tax Credit

  • What activities qualify for R&D tax credit?

    Qualifying R&D expenses and/or activities are those which pass this four-part test:‍‍


    Technical uncertainty. 

    The activity is performed to eliminate technical uncertainty about the development or improvement of a product or process, which includes computer software, techniques, formulas, and inventions.‍‍


    Process of experimentation.

    The activities include some process of experimentation undertaken to eliminate or resolve a technical uncertainty. This process involves an evaluation of alternative solutions or approaches and is performed through modeling, simulation, systematic trial and error, or other methods.‍‍


    Technological in nature.

    The process of experimentation relies on the hard sciences, such as engineering, physics, chemistry, biology, or computer science.‍‍


    Qualified purpose.

    The purpose of the activity must be to create a new or improved product or process, including computer software, that results in increased performance, function, reliability, or quality.

  • How large will my R&D tax credit be?

    Unlimited, if applying the R&D credit against income taxes. These credits can range between 5% and 15% of qualifying R&D costs. If taking the PATH Act R&D credit, a company can receive up to $250k against payroll taxes and take the remainder against income taxes.

  • Can I claim the R&D credit retroactively?

    Yes, we can help you file an amended tax return to claim the R&D credit for previously filed income tax returns (past 3 years), but you cannot take the PATH Act R&D credit on an amended tax return.

  • Will claiming the R&D credit result in an audit?

    The rate of audits among R&D clients is no larger than the rate of clients whose income tax returns are audited. Be proactive about audit readiness while maximizing your credit value by working with an R&D credit expert.


Use Against Income Tax

You can match the credit against income tax dollar for dollar.

No Limit on Claim

Help your growth business grow with no limits on how much you claim.

Carries Forward

The tax credit carries forward for 20 years and you receive money every year you are eligible.

Meet Our Tax Credit & Financial Experts

Shannon Scott

CEO & Cofounder

Chris Smith, CPA

President

Frank Brown, J.D., LL.M.

Chief Incentive Officer & Cofounder

Garrett Gregory, Esq., LL.M.

Special Counsel for Tax Compliance

Joshua Hole, CPA, MT

President of Special Incentives

Roger Boatner, CPA

Partner

Not Sure If You Qualify?

Our Experts Determine Your Eligibility For Free.

We understand that understanding and applying for the R&D Tax Credit may feel daunting. The important thing to remember is that you won’t be alone. OnCentive tax credit experts will be there with you every step of the way, to walk you through the process and help you prepare all the necessary documentation.


A 15-minute call can qualify you for the largest tax credit for US businesses.

Call 205-203-8097
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