Most Small Businesses Qualify
If your team solves technical problems, there's probably a credit in it for you.
What are R&D credits?
The IRS gives companies a credit for technical problem-solving. If your business develops new products, improves existing ones, or figures out better ways to do things, you're probably doing work that qualifies.
This isn't a deduction. It's a dollar-for-dollar reduction in the taxes you owe.
A rough idea of what you get back
The federal credit runs roughly 6% to 10% of your qualified R&D spending (wages, supplies, US contractors, cloud). California adds a separate credit of about 7.5% on R&D done in California. The exact number depends on your payroll, your prior years, and which method works out best for you.
A 10-person engineering team spending half their time on qualifying work typically lands somewhere between $30K and $80K in combined credits. We'll calculate your exact number.
Companies in architecture, engineering, software, manufacturing, and design-build construction commonly qualify. If you've never claimed before, that's normal.
What You Don't Need
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Patents
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A lab
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A maniacal laugh
You just need to be solving problems where the answer isn't obvious.
Do I Qualify for the Credit?
If you can check any of these, you might qualify:
What Qualifies?
Click your industry to see which activities count.
code Software Development
By development phase:
Discovery & Requirements
check_circle Researching whether a technical approach will work
check_circle Prototyping to see if something is even possible
cancel Gathering what users want (business requirements)
Design & Architecture
check_circle Designing a system that handles scale you've never dealt with
check_circle Figuring out how to make two systems talk to each other
cancel Standard wireframes and mockups
Development & Build
check_circle Building features that didn't exist before
check_circle Solving performance problems with no obvious solution
cancel Coding from detailed specs (no unknowns)
Testing
check_circle Testing to discover what breaks under new conditions
check_circle Load testing to find your system's limits
cancel Routine QA to verify it works as designed
Deployment & DevOps
check_circle Building custom deployment pipelines for unique needs
check_circle Automating infrastructure that didn't exist before
cancel Using standard CI/CD tools as documented
architecture Architecture & Engineering
By project phase:
Feasibility
check_circle Analyzing whether a design approach will work on a challenging site
check_circle Evaluating new materials or structural systems
cancel Standard site surveys and zoning review
Pre-Design & Programming
check_circle Solving space constraints with innovative layouts
check_circle Designing for unique functional requirements
cancel Standard programming and space planning
Schematic Design
check_circle Developing a structural system for unusual loads or spans
check_circle Integrating sustainable design with no established solution
cancel Standard layout drawings
Design Development
check_circle Engineering custom MEP systems for unique building needs
check_circle Developing details for unconventional assemblies
cancel Standard specifications from manufacturer guides
Construction Documents
check_circle Documenting novel construction techniques
check_circle Coordination requiring new solutions
cancel Standard permit drawings and details
Construction Administration
check_circle Solving unforeseen technical problems in the field
check_circle Redesigning when conditions differ from plans
cancel Standard site observation and RFI responses
precision_manufacturing Manufacturing
By development phase:
Research & Concept
check_circle Investigating whether a new product design is manufacturable
check_circle Testing new materials for your application
cancel Market research on what customers want
Prototyping
check_circle Building prototypes to see if a design works
check_circle Iterating on designs when the first attempt fails
cancel Making samples of established products
Process Development
check_circle Figuring out how to make something you've never made
check_circle Reducing waste or improving yield with new methods
cancel Following established production procedures
Tooling & Fixtures
check_circle Designing custom jigs and fixtures for new parts
check_circle Modifying equipment to handle new requirements
cancel Ordering standard tooling from catalogs
Scale-Up & Production
check_circle Solving problems when scaling from prototype to production
check_circle Troubleshooting when production doesn't match prototype
cancel Running the production line day-to-day
biotech Biotech & Life Sciences
By development phase:
Discovery
check_circle Developing new assays or detection methods
check_circle Screening compounds for activity
cancel Running established assays on new samples
Preclinical Development
check_circle Designing studies to test safety or efficacy
check_circle Optimizing formulations for stability or delivery
cancel Routine sample analysis
Process Development
check_circle Optimizing cell culture conditions to improve yield
check_circle Developing purification methods for new products
cancel Following established SOPs
Scale-Up
check_circle Solving problems when moving from bench to pilot scale
check_circle Adapting processes for larger equipment
cancel Production runs using validated processes
Analytical & Regulatory
check_circle Developing new analytical methods for novel compounds
check_circle Creating validation protocols for new processes
cancel Compiling standard regulatory submissions
flight Aerospace & Defense
By development phase:
Concept & Feasibility
check_circle Analyzing whether a design will meet performance requirements
check_circle Evaluating materials for weight, strength, or thermal properties
cancel Reviewing customer specifications
Preliminary Design
check_circle Designing components that balance competing requirements
check_circle Running simulations to predict performance
cancel Standard CAD work from established designs
Detailed Design
check_circle Engineering parts that are lighter or stronger than before
check_circle Solving thermal, vibration, or stress challenges
cancel Drafting from approved specifications
Prototype & Fabrication
check_circle Building prototypes to test if the design works
check_circle Developing fabrication processes for new materials
cancel Manufacturing to established drawings
Testing & Validation
check_circle Testing under conditions that haven't been tried before
check_circle Evaluating failure modes and iterating on designs
cancel Standard acceptance testing
Certification
check_circle Developing test protocols for new certification requirements
check_circle Engineering changes to address certification findings
cancel Standard documentation for known certifications