Turn Your Innovation into Dollar-for-Dollar Tax Savings
The Research and Development (R&D) Tax Credit rewards businesses that develop new products, processes, or technologies. Our technical analysis identifies qualifying research activities across your organization, potentially providing hundreds of thousands in dollar-for-dollar tax reduction that can be claimed retroactively and carried forward for up to 20 years.
Direct Tax Reduction
Dollar-for-dollar reduction of your tax liability, providing more impact than deductions alone.
Retroactive
Benefits Claim credits for qualifying Research & Development activities from the past three tax years.
Payroll Tax Offset
Eligible startups can apply up to $500,000 in R&D credits against payroll taxes.
Future Flexibility
Unused credits can be carried forward for up to 20 years to offset future tax liability.
How Does the R&D Credit Claim Process Work?
1
Preliminary Analysis
Free Qualification Review
We evaluate your business activities, technical development processes, and expenditures to determine qualification potential and estimate available tax credits through a no-cost initial assessment.
2
Technical Review
Activity Documentation
Our team interviews key personnel and analyzes project documentation to identify qualifying research activities. We calculate eligible wages, supply costs, and contractor expenses that support your R&D efforts.
3
Implementation
Credit Delivery
We provide a comprehensive report documenting all qualifying activities and expenditures, with detailed calculations and supporting documentation ready for IRS submission. This enables you to claim your credit with confidence.
FAQs
Find Answers to Frequently Asked Questions
About CSSI’s Products and Services
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 RD 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 RD 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
You can typically claim R&D tax credits for the current tax year plus the previous three tax years.
Yes, qualifying startups can use the credit to offset up to $250,000 in payroll taxes annually for up to five years.
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.