Federal R&D Tax Credit Services for Engineering-Driven Companies
We help software, aerospace, manufacturing, AI, and technology companies identify, document, and defend federal R&D tax credits under Internal Revenue Code Section 41 through a CPA-led, flat-fee advisory model.
What Is the Federal R&D Tax Credit?
The Federal Research and Development Tax Credit is a federal tax incentive created under Internal Revenue Code Section 41 to encourage companies to invest in innovation and technical development.
Despite the name, the credit extends far beyond traditional laboratories and scientific research.
Many companies qualify through activities such as:
- Software development
- Artificial intelligence development
- Product engineering
- Prototype development
- Manufacturing process improvements
- Automation projects
- Technical experimentation
For qualifying companies, the credit can reduce federal income taxes and, in some situations, payroll taxes as well.
Innovation Is Expensive
Engineering salaries, contractor costs, prototyping expenses, and product development investments represent significant costs for growing companies.
The federal R&D tax credit allows businesses to recover a portion of those investments and reinvest them back into growth.
Typical client credits range from:
|
Company Stage |
Typical Credit |
|
Early Stage Companies |
$50,000+ |
|
Growth Companies |
$180,000 – $250,000 |
|
Scaling Organizations |
$500,000+ |
Who Qualifies?
Many businesses qualify without realizing it.
Companies commonly eligible include:
- SaaS companies
- Software development firms
- AI startups
- Aerospace companies
- Engineering firms
- Advanced manufacturers
- Energy technology companies
- Construction technology companies
The common denominator is not the industry.
The common denominator is technical uncertainty and innovation.
Driving Growth Through Strategic Clarity
Expenses That May Qualify
Employee Wages
Contractor Costs
Cloud Computing Costs
Prototype Costs
Call Us Today to Schedule a Free Consultation
The IRS Four-Part Test
To qualify under Section 41, activities generally need to satisfy four criteria.
Permitted Purpose
The work seeks to improve:
- functionality
- reliability
- performance
- quality
Technical Uncertainty
The company faced technical uncertainty regarding:
- design
- capability
- methodology
Process of Experimentation
The team evaluated alternatives through:
- testing
- prototyping
- modeling
- simulation
- iteration
Technological In Nature
The activities rely on engineering, computer science, physical sciences, or similar disciplines.
Transparent. Collaborative. Results-Driven.
At our company, every project begins with a deep understanding of your unique needs. We believe that a successful partnership is built on transparent communication, collaborative innovation, and a methodical approach that transforms challenges into measurable results.
CPA-Led Expertise
Engineering Focus
Flat Fee Pricing
Defensibility First
High-Touch Engagement
Flat fee vs. contingency pricing
Two common ways R&D credit studies get priced — and why the structure you choose affects far more than the invoice.
| Category | Flat fee model | Contingency model |
|---|---|---|
| Pricing predictability | Yes | No |
| Fee increases with credit size | No | Yes |
| Alignment around defensibility | High | Variable |
| Long-term cost efficiency | High | Lower |
| Upfront cost | Higher | Lower |
Most federal studies are completed for a flat fee of approximately $10,000, allowing clients to retain the full value of increasing credits as they scale.
Prepared forms ready for filing with your CPA.
Detailed breakdown of qualified research expenses.
Documentation describing:
- qualifying projects
- technical uncertainty
- experimentation processes
- supporting evidence
FAQ
Does software development qualify?
Yes. Software development is one of the most common qualifying activities.
Can startups claim R&D credits before becoming profitable?
Yes. Eligible startups may use the payroll tax offset provision.
How long does an engagement typically take?
Most studies take between 4 and 8 weeks depending on complexity.
Will my engineering team need to spend significant time on this?
No. Our process is designed to minimize disruption to technical teams.
What if we claimed the credit previously?
We regularly work with both first-time claimants and companies with existing credit programs.
Expert Strategies, Industry Trends & Real Results
Find Out Whether Your Company Qualifies
Schedule a discovery call to determine eligibility and receive a preliminary estimate of your opportunity.