Research & Development Tax Credits
Driving innovation requires significant investment. The research and development (R&D) tax credit is a federal tax incentive designed to encourage businesses to invest in R&D by providing a dollar-for-dollar reduction in tax liability for qualifying R&D expenditures. By leveraging the R&D tax credit, organizations can fund more projects—accelerating timelines, mitigating investment risk, and reinvesting savings in talent or technology—without increasing budgets. For firms in architecture and engineering, construction and MEP, life sciences, and government contracting, innovation is integral to securing contracts and staying ahead of competitors.
We specialize in helping businesses leverage the R&D tax credit at both the federal and state levels. Whether you’re developing new products, improving processes, or investing in software and technology, businesses can claim the credit annually on qualifying expenses. As the R&D tax credit landscape evolves, informed guidance is key to maximizing benefits and staying compliant.
R&D Tax Credit Services
At KatzAbosch, we go beyond identifying credits. We walk you through the IRS four-part test, help you understand what qualifies, and manage the entire process from analysis to filing.
Our services include:
- R&D tax credit studies
- Eligibility assessment
- Qualified research expense (QRE) analysis, including employee wages, supplies used in R&D, contract research expenses, and cloud computing expenses
- Documentation and substantiation
- Calculation and filing of R&D tax credit (includes federal and state R&D credits)
- IRS Form 6765, Credit for Increasing Research Activities, completion
- Audit defense through appeals
- Multi-state R&D credit review and filing support
Start Your R&D Tax Credit Assessment
The R&D tax credit is complex, and many organizations are performing more qualifying research and development activities than they realize. Contact us to review your projects and discuss whether the credit could support your work.
Does Your Business Qualify for the R&D Tax Credit?
The IRS uses a four-part test to determine whether research activities are eligible for the credit. To qualify, an activity must meet all four criteria:
Permitted purpose: The research must be aimed at developing a new or improved product, process, software, technique, or formula.
Technological in nature: The activity must rely on principles of engineering, physical or biological science, or computer science.
Process of experimentation: The business must evaluate one or more alternatives through modeling, simulation, testing, or other methods.
Technological uncertainty: There must be genuine uncertainty about whether—or how—a desired result can be achieved at the outset of the research.
Many businesses are performing more qualifying research than they realize. Our team can help you assess your activities against these criteria.
“KatzAbosch was our choice when we were growing and needed more sophisticated tax, financial, and consulting knowledge. We refer them all the time.”
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