· R&D TAX CREDIT · RESEARCH ACTIVITIES · TAX SAVINGS
A Tax Credit Many Qualifying Businesses Never Claim
The research and development tax credit isn't just for pharmaceutical companies and tech labs. Manufacturers, software developers, engineers, contractors, and food processors qualify regularly, though many never claim it. Archer Lewis determines whether your activities qualify and prepares the credit before the filing deadline.
Our Approach
The R&D credit rewards work your business is probably already doing.
The research and development tax credit was designed to reward businesses that invest in improving their products, processes, software, or formulas, not just formal laboratory research. If your team is solving technical problems, developing new processes, writing custom software, improving manufacturing methods, or testing new materials, there's a real chance your activities qualify. The credit reduces your federal tax liability dollar for dollar, not just as a deduction, but as a direct offset against taxes owed. Archer Lewis conducts a thorough qualification study, documents your qualifying activities and expenses, and prepares the credit to withstand IRS scrutiny.
What's Included
Everything the R&D tax credit requires to claim correctly
Identifying qualifying activities is only the first step. The credit has to be documented and defended correctly to survive an IRS review.
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Qualification Analysis
We review your business activities against the IRS four-part test to determine what qualifies and estimate the credit value before we start.
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Qualifying Expense Documentation
Wages, supplies, and contract research expenses that qualify are identified, calculated, and documented accurately.
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Credit Calculation
The credit is calculated using the regular credit method or the alternative simplified credit. We determine which produces the better result for your situation.
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IRS-Ready Documentation
Complete documentation of qualifying activities, personnel, and expenses, prepared to withstand IRS scrutiny.
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Prior Year Studies
If you haven't claimed the R&D credit in prior years, we look back up to three years to capture missed credits through amended returns.
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Payroll Tax Offset (Startups)
Qualifying small businesses and startups can apply the R&D credit against payroll taxes, even before they're profitable. We identify whether you qualify.
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Integration with Tax Strategy
The R&D credit works best as part of a broader tax plan. We integrate it with your overall tax position and planning strategy.
A direct, dollar-for-dollar reduction in taxes owed.
The R&D tax credit isn't a deduction that reduces taxable income; it's a direct credit against taxes owed. For businesses with significant qualifying activities, it can be one of the most valuable tax benefits available. Many businesses that miss it are eligible but have simply never had their activities reviewed.
See If You Qualify
Common Questions
What businesses ask about the R&D tax credit.
The IRS uses a four-part test: the activity must involve a permitted purpose (improving a product or process), technological in nature (relying on hard sciences or engineering), involve experimentation (testing alternatives to achieve a result), and eliminate technical uncertainty. Activities like developing software, improving manufacturing processes, formulating new products, and solving engineering problems regularly qualify.
Yes. The R&D credit applies across industries: manufacturing, construction, food processing, agriculture, architecture, engineering, and software development all produce qualifying activities regularly. The credit isn't limited to formal research departments or laboratory settings.
It depends on your qualifying expenses: primarily wages paid to employees working on qualifying activities, plus supplies and contract research. The credit is calculated as a percentage of those expenses. For businesses with significant technical workforces, the credit can be substantial, often six figures annually.
You may be able to capture missed credits through amended returns, generally up to three years back. We conduct a prior year study to identify what was missed and prepare the amended returns to claim it.
Yes. Qualifying small businesses can apply the R&D credit against payroll taxes (up to $500,000 per year), even if they have no income tax liability yet. This makes the credit accessible to early-stage companies that are investing heavily in development before they're generating profit.
