Frequently Asked Questions

How does pricing work?

Clarus R&D is designed with entrepreneurs in mind. Running a startup comes with enough worries – cash flow, time, staffing, etc. That’s why Clarus R&D is practically a risk-free service. We don’t get paid until you do. That’s right – there’s no fee until you receive your benefit. Most customers pay as little as 15% of the tax credits they receive, based on various discounts and multi-year commitments. We’re completely transparent about our pricing and will discuss it in detail when we begin.

What is the public policy reason for the R&D tax credit?

The U.S. government created the R&D tax credit in 1981 to incentivize American based companies to create innovative technology, instead of losing intellectual property to other nations.

Why haven’t I heard of this?

Many companies were not eligible to apply until the PATH act was passed in 2015. And once passed, the government did a poor job of communicating it. Even companies that knew about it failed to pursue it, due to complexity and time constraints. We offer a solution that makes it easier and less time consuming.

This sounds too good to be true. Is it?

No! The R&D tax credit was created by the U.S. government to give funds back to companies who spend money innovating on new technology. This is a completely legitimate program. It requires no money up front — only time and expertise. That’s the role we provide.

Does this apply to my company?

To see if you qualify for the R&D tax credit use our tax credit calculator.

What’s the benefit?

Simply put, tax credits create money that goes back in your company’s pocket to fuel further innovation and growth.

What’s the process like?

With Clarus, it takes a fraction of the time to pursue the R&D Tax Credit compared to traditional R&D studies. To learn more about our technology-enabled process, please visit Why Clarus.

Does my company need to be in a specific industry?

No. Startup companies in many different industries qualify. Learn more on our Who Qualifies? page.

Do I receive money one time or every year?

You receive money every year that you are eligible and elect to apply the credit against payroll tax.

Is this the same thing as the GAAP accounting for R&D?

No. The purpose of GAAP is to make sure financial reporting is consistent and transparent. The R&D Tax Credit rewards companies for innovation.

How do I know if my company does R&D?

If your company has wage or other expenses related to the development of new or improved products, you may have qualifying R&D activities.

Why does Clarus Solutions offer this?

We aim to maximize the intent of the government by helping to build awareness of the tax credit among start-ups and entrepreneurs, which are the backbone of our economy and the innovation produced by our country.