- Elimination of uncertainty: You must show that you have tried to eliminate uncertainty about the process or product.
- Process of experimentation: Using trial and error, simulations and modeling, you must demonstrate that you have assessed alternative methods for your solution.
- Technological in nature: Your experimentation must rely on the sciences, such as physics, chemistry, biology, computer science and engineering.
- Qualified purpose: Your research must be conducted with a goal of creating a new or improved process or product that increases quality, reliability, function or performance.
Our R&D tax credit consultants have extensive experience with the four-part test and know exactly what qualifies for your specific industry.
We also know which tax credits are specific to your state, and we can determine which ones are applicable to your business. Once we assess your federal and state tax credit eligibility, we also determine which credits can be applied retroactively for the previous three open tax years.
In addition to evaluating tax credit eligibility, we take a close look at your spending to find additional savings opportunities. Many R&D-related costs can be deducted even if they can’t be applied to a specific R&D credit, such as expenses for equipment, software and other business essentials.
After our study is complete, we provide tax preparation and assistance, including:
- Identifying activities that qualify for credits.
- Documenting costs.
- Preparing tax filings.
- Assisting you with any state or federal audits.