Research & Development Tax Credits
The R&D Tax Credit is a dynamic business incentive that encourages activities and processes that are both innovative and technical in nature.
We offer a no-cost assessment to determine if your business qualifies for the R&D tax credit. Our team handles everything from identifying eligible activities and expenses to preparing the documentation needed to claim the credit, making the process simple and stress-free.
What is the R&D Tax Credit
The Federal Credit for Increasing Research Activities—commonly known as the Research & Development (R&D) Tax Credit—is a valuable incentive that can help businesses reduce their income tax liability. In some cases, qualified small businesses may also apply the credit toward payroll taxes and alternative minimum tax.
Originally enacted in 1981, the credit has evolved significantly over time. It was extended 16 times, briefly lapsed, and was ultimately made permanent by the PATH Act in 2015—offering businesses long-term stability and planning opportunities.
Our R&D Tax Credit Study Process
MSC’s experienced team specializes in maximizing tax incentives for businesses across industries. We begin with a no-cost consultation to assess your eligibility for the R&D tax credit. Our experts then identify qualifying activities and expenses through interviews and documentation review. Finally, we provide a detailed report with your estimated credit, supporting documentation, and guidance for filing.
No Cost/No Obligation Assessment
We begin with a complimentary consultation to evaluate whether your business activities may qualify for the R&D tax credit. During this initial step, we gather high-level information about your projects, industry, and operations to determine eligibility.
Qualitative Discovery
Our team then conducts interviews and reviews documentation to identify specific activities that meet the IRS’s criteria for qualified research. This stage ensures we build a detailed narrative around your innovative efforts, capturing all relevant activities.
Quantitative Discovery
Next, we quantify the costs associated with qualified activities. This includes identifying and documenting eligible wages, supplies, and contractor costs. Our experts ensure all financial data is collected, analyzed, and presented in accordance with IRS requirements.
Strategy & Reporting
Finally, we compile a comprehensive report that includes a detailed calculation of your potential credit, documentation to support your claim, and guidance on how to apply the credit to your tax return.
What is the 4-Part Test?
To qualify for R&D Tax Credit, activities must meet the four-criteria, also known as the 4-Part test:
- Permitted Purpose – Activities meant to create a new or improved software, product, process, formulation, invention, or technique that result in increased reliability, functionality, performance, or quality.
- Elimination of Uncertainty – Activities attempting to eliminate uncertainty
- Process of Experimentation – Activities involving a process of experimentation (systematic trial and error).
- Technological in Nature – Activities that are technological in nature (i.e. relying on the hard sciences like physics, chemistry, and engineering).
What We Promise:
- We do all the heavy lifting – in-person site visits, reports, & lifetime audit support
- We build personal relationships—every client matters
- We deliver premium and defensible reports with IRS-preferred best practices
- We ensure a seamless experience with timely, accurate results
Let's Get Started.
Contact us today to find out how we can capture extraordinary tax benefits for all types of entities.