Are you taking advantage of the Research & Development Tax Credit? As one of the largest and most broad corporate tax credits available, there’s a good chance your business qualifies. Our R&D Tax Credit Services Team can determine your organization’s eligibility and maximize the amount of savings you can receive.
The Research & Development Tax Credit is one of the largest dollar-for-dollar federal and state corporate tax benefits in the Internal Revenue Code. Over 30 states offer R&D credit, and businesses are eligible if they participate in activities involving the design, development, and improvement of products, software, or processes. There’s no limit on the amount that can be claimed on each return, and the credit can be back-dated to the previous year or rolled-over to the following year.
R&D Tax Credits can be rewarded for many tasks being performed by all types of taxpayers, including but not limited to: Life Sciences, Aerospace and Defense, Banking/Insurance, Retail, Manufacturing, Financial Services, Small Tech start-ups, etc. To be eligible for the R&D tax credit, companies must meet these minimum qualifications, even if they are not taxable:
The R&D Tax Services Team specializes in determining your full eligibility through an R&D Tax Credit study —a careful analysis that looks at qualifying activities and expenses.
An R&D Tax Credit study involves generally 2 main areas:
Uncovering this data for specific taxpayers is a unique skill that should be performed by qualified tax professionals. Our R&D Tax Credit team has performed R&D studies (as well as supporting those claims on audits) for all industries, and have been battle-tested in all types of client and IRS environments.
In order for an activity to qualify for the Research and Development Tax Credit, it must meet each part of the follow 4-part test:
1. Technological in Nature Test
2. Permitted Purpose Test
3. Technical Uncertainty Test
4. Process of Experimentation Test
Computer Software developed for internal general and administrative functions are subject to three additional “high threshold of innovation” R&D credit tests.
1. Innovation Test
2. Significant Economic Risk Test
3. Commercially Available Test
The Research and Development (“R&D”) tax credit under Internal Revenue Code (“IRC”) §41 is a statutory tax incentive, not a discretionary benefit. During an audit, the Internal Revenue Service (“IRS”) does not evaluate whether a taxpayer’s work “looks innovative”. Instead, examiners apply a structured, statute driven analysis grounded in §41, the Treasury Regulations, and the…
The New Jersey Economic Development Authority (NJEDA) will open the application window for the 2026 Technology Business Tax Certificate Transfer Program (the “NOL Program”) on May 1, 2026, with submissions due no later than June 30, 2026. For emerging and growth stage technology and biotechnology companies, this long standing incentive continues to be one of…
Innovation is the foundation of the software industry. From developing proprietary platforms to refining algorithms and deploying advanced AI models, software companies continuously invest in research and development to stay competitive. What many companies don’t realize is that these efforts may qualify for one of the most valuable tax incentives available, the Research & Development…
For more information or to discuss your business needs, please connect with a member of our team.