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.

purpose

Purpose

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

technological

Technological

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

expermentation

Experimentation

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

eliminating

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.

tax-returns

Tax Returns &
Financial Statements

payroll

Employee Payroll & Expense Reports

projects-lists

Project Lists

documentation

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