Get to Know the R&D Tax Credit

With the intention to propel innovation forward, the R&D tax credit pays you back for work you’ve already done. As one of the largest annual tax credits available to U.S. companies, it's essentially a reward for business as usual.

What work qualifies?

Many businesses are eligible for the R&D tax credit, but don’t realize it. Examples of industries that often qualify include software, biotech, manufacturing, and the list goes on.

Activities qualify for the tax credit if they meet each of these criteria:

Qualified purpose

Are you developing or improving a product, process, formula, or software?

Technological in nature

Is your work within physical or biological sciences, engineering, or computer sciences?

Process of experimentation

Are you systematically evaluating one or more alternatives?

Eliminate uncertainty

Are you asking questions like, “Can we develop it?” or “How do we develop it?”

Congratulations!

You may qualify for the R&D tax credit. Book a demo to find out how to get the money you deserve.

We’re sorry.

You may not qualify for the R&D tax credit at this time.

Learn More

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Credit where credit is due

Explore more about the R&D tax credit and how we can help your business thrive.

Startup Growth Business Enterprise Tax Practitioner

startup

Startups can claim $250K per year

Startups have a unique advantage when it comes to the R&D tax credit. Young companies with less than $5 million in gross receipts can use the R&D tax credit to offset payroll taxes up to $250,000 per year.

What can the R&D tax credit do for your business?

Reduce your payroll taxes

Use to offset your payroll taxes up to $250,000 per year.

Use as non-dilutive capital

Re-invest in your early-stage business and focus on the work that matters.

Carry your credit forward

Get credit for work you’ve already done and carry it forward quarter to quarter.

growth-business

Helping growth businesses grow

You've outgrown the payroll offset and can now monetize the R&D tax credit against income tax. Get credit for all the work you’re doing to drive the world forward while increasing your bottom line.

What can the R&D tax credit do for your business?

Use against your income tax

You can match the credit against income tax dollar for dollar.

No limit on what you can claim

Help your growth business grow with no limits on how much you claim.

Carries forward for future growth

The tax credit carries forward for 20 years and you receive money every year you are eligible.

enterprise

Driving the world forward with your innovation

Innovation is at the forefront of your company. You now have the ability to complete an in-house R&D study with confidence, transparency, and audit-ready documentation.

Is there a better way to complete your R&D study?

Secure your data

Safely manage confidential documents instead of sharing them loosely by email.

Save time

Communicate across your organization and eliminate business interruptions.

Know your costs

Have full transparency into your R&D study fees with no hidden fees.

tax-practitioner

The money your clients deserve

Help your clients get the tax credits they’ve earned by driving innovation forward.

What are the benefits of an R&D tax practice?

Create value for clients

Now more than ever, you are likely to have clients that qualify for the R&D tax credit.

Retain existing clients

Expand your relationship with your clients and unlock the full value of their tax benefits.

Attract new clients

Extend your service offerings to engage new clients and create growth opportunities.

Solutions for every business

See our R&D tax credit software designed just for you.

FAQs

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.

Many companies were not eligible to receive a current benefit until the PATH Act was passed in 2015. And once passed, not a lot of companies heard about it. Even companies that did know about it failed to pursue it, due to complexity and time constraints. We offer a solution that simplifies the process and maximizes ROI.

No! The R&D tax credit was created by the U.S. government to give funds back to companies that spend money on technology-based innovation.

Simply put, the R&D tax credit creates money that goes back into your company’s pocket to fuel further innovation and growth. Estimate your R&D credit with our quick calculator.

The R&D tax credit can be used to offset:

  • Income taxes if you are in a taxable position.
  • Alternative Minimum Tax (AMT) if you have less than $50 million in average revenue and you owe AMT in the current year.
  • Employer portion of social security taxes up to $250,000 each fiscal year if you are a qualified small businesses.

With Clarus, it takes a fraction of the time to pursue the R&D tax credit compared to traditional R&D studies. Learn more about our technology-driven process.

No. Companies in many different industries qualify. Learn more about the R&D tax credit.

You receive money every year you are eligible.

Many companies don’t realize they are eligible. If your company invests in any type of innovation, you may have qualifying R&D activities. Gauge your eligibility with our quick calculator.

We aim to maximize the intent of the government by building awareness of the R&D tax credit amongst all companies investing in technology-based innovation.

Our pricing is built to fit your business and designed to reflect the efficiencies of our process. Startups pay a small base fee plus a percentage of their credit with extended terms.

In our experience, the majority of companies that have claimed R&D tax credits are not optimizing them and are overpaying for services. With a customized mix of technology and support, our R&D tax credit platform helps companies identify, document, and calculate credits more efficiently and effectively.

Choose what works best for your tax team. We can deliver your R&D study using our full-service solution. Or you can license our software to do it yourself.

Our R&D tax credit platform was built by tax experts from the Big 4 Accounting firms with over 30+ years of R&D experience. Along with our tech experts, our software is consistent and reliable, ensuring all IRS required documentation is easily generated right from the software.

The Clarus R+D tax credit platform incorporates processes and workflow to identify, document, and calculate credits efficiently while providing all required IRS and supporting documentation to confidently defend your earned credits.

For enterprise customers, our software and support packages are based on a fixed price.

The 2015 PATH Act leveled the playing field. The number of companies claiming the R&D tax credit is expected to quadruple by 2025. About half of these companies are startups and SMBs with an average credit of $40k. These are your clients and you need the right tool to serve them.

CPA firms with an existing R&D tax practice often choose to partner with Clarus R+D for greater efficiency and revenue potential – and, most importantly, compliance.

In a nutshell, technology. Our software simplifies the process and reduces fees.

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