Estimate Your R&D Tax Credit Savings
Find out how much your innovation and development activities could save you on federal taxes.
How R&D Tax Credits Work
The Process is Simple:
Select your industry for accurate wage qualification rates
Enter your qualifying Research & Development expenses and gross receipts
Our calculator runs both Regular and Alternative Simplified Credit methods
See instant estimates and discover which method maximizes your benefit
What You’ll Need
Industry & Company Info
Your industry type and R&D history help us optimize your calculation method and apply the correct wage qualification rates.
Supplies & Materials
Raw materials, prototypes, and supplies consumed during research, experimentation, and development processes.
Contract Research
Amounts paid to third-party contractors conducting qualified research on your behalf (65% qualifies for the credit).
Salaries & Wages
Total compensation for all employees performing, supervising, or supporting qualified research activities.
Tax Savings Analysis
We’ll evaluate your specific circumstances and provide a detailed estimate of potential tax savings across our service offerings. Complete the form to get started or scroll down to learn more about how our analysis benefits you.
Learn More
The CSSI Advantage: Maximizing Your Innovation ROI
Eligibility
R&D credits aren’t just for laboratories and tech companies. From manufacturing process improvements to recipe development, software enhancements to engineering designs- if you’re solving technical problems through experimentation, you likely qualify.
Immediate Tax Savings
Our analysis identifies all qualifying research expenses across wages, supplies, and contract research, typically generating $70,000+ in credits per $1 million in R&D spending—directly reducing your federal tax liability dollar-for-dollar.
Capture Past & Future Credits
Claim credits retroactively for the past three years through amended returns, and carry unused credits forward for up to 20 years. Startups can even offset payroll taxes up to $250,000 annually.
Complete Study Documentation
We deliver a comprehensive bound report documenting all qualifying activities, technical uncertainties resolved, and expense calculations—providing audit-ready substantiation that protects your credits.
Industry-Leading Track Record
With specialized R&D teams across manufacturing, software, food & beverage, and more, we’ve secured billions in R&D credits for clients without ever triggering an IRS audit.
Start Reducing Your Tax Burden Now
Discover the hidden tax benefits for your property or business with our no-cost preliminary analysis. Our experts will evaluate your eligibility and estimate your potential savings with no obligation.
Frequently Asked Questions
What are R&D tax credits?
R&D tax credits are dollar-for-dollar reductions in tax liability for companies that conduct qualifying research activities. They’re designed to incentivize innovation and technological advancement.
What industries typically qualify for R&D tax credits?
While many industries can qualify, common ones include manufacturing, software development, engineering, aerospace, pharmaceuticals, food science, and agriculture.
What activities qualify for R&D tax credits?
Qualifying activities must meet a four-part test:
- Be technological in nature
- Involve the elimination of uncertainty
- Involve a process of experimentation
- Have a qualified purpose (to create new or improved business components)
What expenses can be included in R&D tax credit calculations?
Qualified research expenses typically include:
- Wages for employees conducting research
- Supplies used in the research process
- Contract research expenses (65% of payments to contractors)
- Rental or lease costs of computers used in research activities
How far back can I claim R&D tax credits?
You can typically claim R&D tax credits for the current tax year plus the previous three tax years.
Can startups benefit from R&D tax credits?
Yes, qualifying startups can use the credit to offset up to $250,000 in payroll taxes annually for up to five years.
How is the R&D tax credit calculated?
The credit is generally calculated as a percentage of qualified research expenses over a base amount, which is determined by your company’s historical research activities.
What documentation is needed to claim R&D tax credits?
You should maintain contemporaneous documentation of your research activities, including project records, payroll records, general ledgers, and any other documents that support your qualified research expenses.
How do I calculate R&D Tax Credits?
Calculating the R&D (Research and Development) tax credit involves identifying qualified research expenses and applying IRS-approved formulas to determine the credit amount. The credit is available to businesses that develop or improve products, processes, software, or technologies in the U.S.
The most common method is the Regular Credit Calculation , which equals 20% of QREs above a base amount, typically based on historical R&D spending and gross receipts. Alternatively, the Alternative Simplified Credit method offers 14% of QREs exceeding 50% of the average QREs over the prior three years. Startups with limited historical data often choose the ASC method for its flexibility.
Qualified expenses usually include wages for technical staff, supplies used in R&D activities, and a portion of contract research costs.
At CSSI, our experts help businesses identify eligible activities, calculate accurate credit amounts, and prepare the necessary documentation for IRS compliance. Proper calculation not only reduces tax liability but also frees up capital for reinvestment into innovation and growth.
How does the R&D Tax Credit work
The R&D tax credit is a dollar-for-dollar federal tax incentive that rewards businesses for investing in innovation and technical development within the United States. It applies to companies of all sizes and across industries that engage in qualified research activities such as developing new products, improving existing processes, or testing prototypes.
The credit is calculated based on qualified research expenses (QREs), which typically include employee wages, materials used in development, and contractor fees related to research efforts. Once calculated, the credit can be applied directly against your income tax liability. In some cases, small businesses and startups may also apply the credit toward payroll taxes.
To claim the credit, companies must document their research activities, identify eligible expenses, and file IRS Form 6765 with their tax return. Working with a knowledgeable provider ensures you capture the full value of the credit while staying compliant.
CSSI assists businesses in identifying qualifying R&D work, calculating eligible expenses, and preparing proper documentation. For many companies, the R&D tax credit becomes a powerful tool to offset taxes and reinvest savings back into growth and innovation.
