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R&D Tax Credits

Turn innovation  into real tax savings, without the complexity.

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The Research and Development (R&D) Tax Credit is one of the most valuable federal tax incentives available to companies today. The credit provides a dollar-for-dollar reduction in federal income tax liability and, for qualified small businesses, may also be used to offset certain payroll taxes.

Originally introduced in 1981 to stimulate economic growth and encourage innovation within the United States, the credit continues to serve that same purpose more than four decades later.

Why Claim the R&D Tax Credit?  

The R&D credit can be an incredibly valuable incentive for companies regardless of size or revenue. Even pre-revenue companies can benefit from the credit. The credit’s benefits include:  

  • Dollar-for-dollar federal and state tax savings (available in 35+ states)
  • Up to 20-year federal carryforward, enhancing long-term value 
  • Potential increase in business valuation and deferred assets  
  • No cap on eligible expenses or annual federal credit 
  • Up to $500,000 annually against payroll taxes for Qualified Small Businesses  

Whether you’re developing new products, improving existing processes, building proprietary software, or exploring new techniques and formulas, your business may qualify. 

How EisnerAmper Can Help

EisnerAmper has a dedicated team of R&D tax credit specialists who can help you with:

  • R&D tax credit studies  
  • Payroll tax credit offsets for Qualified Small Businesses  
  • Implementing systems to capture and leverage qualifying data for future tax years  
  • State R&D tax incentives across 35+ jurisdictions  
  • R&D tax credit analysis for tax provision purposes  

 

Our Approach  

We understand that your technical teams are focused on innovation, not tax documentation. That’s why we build our strategy around your existing financial, employee, and project data, minimizing disruption while maximizing results. Our customizable process draws on a range of methodologies tailored to your industry and available data, including: 

Utilizing existing project tracking and project cost accounting systems

ASCO 730 safe harbor-based studies

On- and off-year studies that balance scope and efficiency across tax years

Quantitative and Qualitative-based studies leveraging existing substantiation

Regardless of the study type, our goals remain consistent: maximize your benefit within IRC Section 41, aggregate costs in an auditable manner, and minimize your team’s time investment.

 

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Do Your Activities Qualify for R&D Credits?

Qualifying research activities are defined more broadly, allowing companies of all sizes and across virtually every industry to potentially benefit from the credit, not just “traditional” scientific research.  

Qualified research does not need to be high-tech, revolutionary, or world-changing; what matters is that the research is new to your business and its operations. To qualify, an activity must meet all four of the following IRS criteria: 

  1. Develop a new or improved business component, such as a product, process, computer software, technique, formula, or invention, that results in improved functionality, performance, quality, or reliability. 
  2. Discover information to eliminate uncertainty about the capability, method, or design of the business component.
  3. Engage in a process of experimentation to resolve technical uncertainty, such as systematic trial and error, iterative testing, modeling, prototyping, or simulation to evaluate alternatives.
  4. Be technological in nature, relying on hard sciences such as physical, biological, engineering, or computer sciences. 

What Expenses Qualify for the R&D Tax Credit?

  • Wages paid to employees who directly engage in, supervise, or support research activities
  • Supplies used in the conduct of qualified research
  • Cloud computing or hosting costs related to qualified research
  • 65% of contract research amounts paid by the taxpayer to any person (other than the taxpayer) for qualified research 

Why Choose EisnerAmper for R&D Tax Credits?

EisnerAmper delivers a flexible, results-driven approach to maximizing and documenting R&D tax credits. We understand that your technical teams are focused on true innovation—not paperwork—so we offer tailor-made strategies that leverage your existing financials, employees, and project data with minimal disruption.  

Our experienced professionals maintain compliance, optimize your credits, and provide clear, defensible documentation. With a proven track record across industries, EisnerAmper combines deep technical knowledge with practical business insight, making us a trusted advisor for companies looking to unlock the full value of their R&D investments. 

Ready to Get Started?

EisnerAmper is here to guide you every step of the way. Whether you’re identifying qualifying activities, documenting expenses, or maximizing your credit, our team provides practical solutions for your business needs. Reach out to our professionals below to find out how you can best optimize R&D credits for your business.