Research & Development Tax Credit (R&D)

for 2020 and 2021

Money for your company

A TAX CREDIT FOR WORK YOU’VE ALREADY DONE

Companies claim billions in R&D tax credits each year, but most still go to large corporations. Now startups and SMBs can take advantage of America’s biggest tax incentive.

What changed?

The federal R&D tax credit was originally established in the early 1980’s to stimulate growth in the US economy. Recent legislation has changed the game, broadening access to this significant benefit.

FIND OUT IF YOU QUALIFY

COMPANIES HAVE ACCESS TO A NEW FORM OF NON-DILUTIVE CAPITAL THAT NEVER EXISTED BEFORE

The impact

Fuel your growth by continuing to invest in technology-based innovation.

A tax savings scenario

A tech startup based in San Francisco raises $4M to develop smart dental technology & insurance products. In 2020, $1.16M of this capital is spent on qualified innovation activities as follows:

SALARY AND WAGE EXPENSES

Often the largest component; (1) W-2, Box 1, for research, direct supervision, direct support; must be US based

$1,102,000

THIRD PARTY EXPENSES

Performed by non-employees and contractors; 65% of contract research expenses may be eligible

$41,145

SUPPLIES

Non-depreciable, tangible personal property used in development activities, generally consumed or destroyed during process

$24,000

TOTAL R&D SPEND

$1,167,145

CREDIT AMOUNT* $116,715

*For most companies the credit is 10% of qualified research expenditures.

Do you qualify?

Sample of Qualifying Businesses

Software

Computer science based product/service development

Material Science

Discovery and design of new materials, particularly solids

Biotech

Agriculture, food production, medicine

Device Manufacturers

Mobile, manufacturing, and medical

Retail

Innovative or novel materials development

AI/Machine Learning

AI powered tech solutions

Ready to get started?

Schedule a free consultation with our team of experts to learn more. We’ll discuss the R&D tax credit and help you determine if our solution is a fit for your company.