What is the R&D Tax Credit?

Qualifying clients average $250k in R&D Tax Credits from the IRS for their investments in innovation.

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With just a little info, our Strike Experts can help you start your R&D tax credit journey.

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How the R&D Tax Credit works

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Federal R&D Tax Credit

Recover upwards of 10% of your R&D spend from the IRS. Qualified small businesses can offset payroll taxes up to $250,000 per year.

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State R&D Tax Credit

Depending on the state where the R&D activities are performed, companies can recover up to 12% of their expenses to offset various tax liabilities.

How do I know if my projects qualify?

All expenses must undergo The 4-Part Test in order to determine whether the claim meets the qualifying criteria standard for approval.

The 4-Part Test is the most challenging and extensive part of any R&D Tax Filing. It is essential to have an experienced hand to ensure that your R&D Tax Credit return is properly filed to maximize the return R&D tax credits.

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Purpose

The research must impart new or improved functionality, performance, reliability, or quality to a product, process, formulation, invention, software, or technique.

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Technological

The activity undertaken relies on the principles of “hard” sciences including physics, biology, engineering, chemistry, or computer science.

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Experimentation

The activities constitute a process of experimentation with the intent to resolve the technical uncertainty through the systematic evaluation of alternate solutions.

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Eliminating Uncertainty

From the outset of the project, the development team must encounter technical uncertainty regarding the optimal design, methodology, or capability to achieve project specifications.

What expenses qualify for R&D tax credits?

Here’s a look at the types of expenses your company can claim for R&D Tax Credits.

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US Employee Salaries

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Supplies Consumed in R&D

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US Subcontractors

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Offsite Server Rental & Cloud Computing

What documentation will I need to provide?

We’ll work with you to surface all the appropriate documentation to provide a comprehensive report of your qualified R&D tax credits.

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Tax Returns &
Financial Statements

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Employee Payroll & Expense Reports

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Project Lists

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Supporting Documentation

These elements will help us to develop a list of expenses related to the development of...

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Inventions

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Processes

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New/Improved Products

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Software

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Formulations

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Techniques