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Industries that qualify:
·       Blockchain Development
·       Video Game Development
·       Software Development
·       Contract Manufacturing/Manufacturing & Distribution/Consumer Goods Manufacturing
·       Pharmaceuticals
·       Food & Beverage
·       Mortgage & Banking/Financial Services
·       Metal Fabrication/Plastics Injection Molding/Tool and Die
·       Construction & MEP/Architecture & Engineering
·       Chemicals
·       Oil & Gas
·       Aerospace
·       Life Science
 
If not in the above industries: Does the company take part in R&D?
Are they developing new or improved:
·       processes?
·       products?
·       designs?
·       formulations/techniques?
·       prototypes or prototype machines?
·       new software platforms to interface with clients or customers?
·       highly automated production lines with a combination of mechanical automation and computerized robotics?
·       Are you experimenting with new materials /coatings?
 
1. What exploration have you done in terms of tax savings strategies, deductions, or credits in the past?
2. Have you heard of the R&D tax credit?
3. Are you designing, developing, or improving products, software or processes?
 
Why the R&D tax credit?
·       Dollar for dollar tax credits for everyday development expenses 
·       Offsets tax liability (if pre-profitability, can offset payroll taxes)
·       Increases cash flow
·       Can claim prior 3 years of R&D expenses.
 
R&D Credit Company Qualification Phases:
1.     Identifying R&D (4 Part Test)
What does your product development/project/R&D process look like?
a.     Are you developing new or improved:
·        processes?
·        products?
·        designs?
·        formulations/techniques?
·        prototypes or prototype machines?
·        new software platforms to interface with your clients or customers?
·        highly automated production lines with a combination of mechanical automation and computerized robotics?
·       Are you experimenting with new materials /coatings?
 
b.     (1) Permitted Purpose Test:
                                                    i.     A business component is defined to be “any product, process, software, technique, formula or invention used by your company in trade or business.”
                                                   ii.     This means the qualified research activity needs to be related to the quality, performance, reliability, or new or improved function of a business component of your company.
 
c.     (2) Technological Uncertainty Test:
                                                 iii.     The qualified research activity must involve the elimination of uncertainty. An activity entails uncertainty if you did not know one or more of the following:
1.     Whether the desired results could be achieved 
2.     The specific means of achieving the desired result
3.     The appropriate design of the business component being developed
 
d.     (3) Process-of-Experimentation Test:
“Substantially all” of the activity must involve a “process of experimentation” involving more than one possible approach toward achieving the result, where the capability or method of achieving the result is uncertain at the outset of the activity.
 
e.     (4) Technological‐in‐Nature Test:
 
Any qualified research activity that is performed to discover information is required to be technological in nature. This means any experiments that are used to eliminate uncertainty must rely on principles of physical or biological sciences, engineering, or computer science.
In relation to the above, qualified research expenses can include employee compensation, materials, and contracted services.