09 — SERVICETax Strategy

R&D Tax Credits

Convert Your Development Spend Into Dollar-for-Dollar Tax Credits

If your team builds software, improves products, or solves technical problems, you likely qualify. We document the work, calculate the credit, and defend it — including the payroll-tax offset for pre-revenue startups.

  • 100% CA delivered

    Chartered Accountant (CA)

  • 50-state & global

    US tax & legal compliant

  • Growth focused

    Maximize profit & tax savings

Simple language guide

What is R&D Tax Credits? Explained without the jargon.

The R&D tax credit rewards businesses for improving products, processes, or software — not just white-lab research. A credit is far stronger than a deduction: it reduces your tax bill dollar-for-dollar. We determine what qualifies, calculate the credit, and build the documentation that holds up under IRS review.

Who should use this service?

Software companies, e-commerce brands building custom tooling, agencies, and product startups with technical payroll.

What's included

Official items you receive

  • Four-Part Test Qualification Study & Written Memo
  • Federal & State R&D Credit Calculation (Form 6765)
  • Payroll Tax Offset Election for Qualified Small Businesses
  • Contemporaneous Project & Time Allocation Documentation
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Business growth strategy

How R&D Tax Credits Grow Your Business Properly

Accounting isn't just compliance — done right, it's a competitive advantage that fuels long-term growth.

01

Dollar-for-Dollar Tax Reduction, Not Just a Deduction

A $50,000 deduction saves you your tax rate on $50,000. A $50,000 credit saves you $50,000. Credits are the single most efficient tax instrument available to a product business.

02

Cash Back Even With Zero Profit

Qualified small businesses can apply up to $500,000 of credit against employer payroll taxes each year — real cash relief for pre-revenue and reinvesting startups that owe no income tax.

03

Fund Your Next Engineering Hire

Credits are typically a meaningful share of qualified technical wages, which turns your existing development payroll into budget for the next hire.

04

Claim Prior Years You Already Paid For

Open tax years can generally still be amended, so development work you already funded can produce a refund today.

Step-by-step process

How we work together

Four simple, hassle-free steps to deliver results securely.

01

Free Qualification Screen

A short call on what your team builds tells us quickly whether a credit study is worth running.

02

Four-Part Test Study

We map projects against the IRS four-part test and identify qualifying wages, contractor spend, and cloud/supply costs.

03

Credit Calculation & Documentation

We compute federal and state credits, prepare Form 6765, and assemble the contemporaneous project record behind every dollar.

04

Filing, Offset Election & Audit Defense

We file with your return, elect the payroll offset where it applies, and stand behind the claim if the IRS asks questions.

Features & scope of work

Complete service coverage

Every detail handled by an experienced Chartered Accountant (CA) with complete accuracy.

Four-Part Test Qualification Analysis

Permitted purpose, technological in nature, elimination of uncertainty, and process of experimentation — assessed project by project.

Payroll Tax Offset for Qualified Small Businesses

Pre-revenue startups can apply the credit against employer payroll taxes instead of income tax, turning it into near-term cash.

State R&D Credit Stacking

Many states run their own R&D credit alongside the federal one. We claim both where you qualify.

Section 174 Capitalization Coordination

R&D costs must now be capitalized and amortized. We coordinate the credit with your Section 174 treatment so the two align.

Frequently asked questions

Questions about R&D Tax Credits

Yes. The credit covers developing or improving software, products, and internal processes. Building custom integrations, rearchitecting a platform, or solving technical problems through trial and error commonly qualifies. It is not limited to scientific research.
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