FAQ
Frequently asked questions.
Who qualifies for the R&D tax credit?
Most companies that develop new or improved products, processes, software, formulas, or techniques can qualify — including pre-revenue startups. The four-part test (permitted purpose, technological in nature, elimination of uncertainty, process of experimentation) is the gating criteria.
Can a startup that isn't profitable yet use the credit?
Yes. Qualified small businesses can offset up to $500,000 of the employer's portion of payroll tax with the federal R&D credit (raised from $250,000 by the Inflation Reduction Act of 2022). This is often the most valuable use of the credit for early-stage companies.
Are there state R&D credits too?
Most states with an income tax offer their own R&D credit, often computed off the federal QREs. If you qualify federally, there's a strong chance you qualify at the state level as well.
What does an engagement look like?
Engagements are scoped to your facts and circumstances. We start with a free consultation to confirm there's a credit worth pursuing, then move into qualifying-activity interviews, QRE calculation, and a deliverable that supports the position on your return.
Do you handle audit defense?
Yes — as an Enrolled Agent I can represent taxpayers before the IRS and state tax authorities. We also offer limited-scope engagements specifically for audit defense.