What is the R&D Credit?

The R&D tax credit is a tax incentive the US provides to encourage businesses to invest in research and development activities. It is designed to promote innovation and technological advancement by reducing the tax burden on companies engaging in qualified research activities.

What makes
a company eligible for the
R&D tax credit?

Only qualified R&D activities are eligible for tax credit, which must pass the IRS’s 4-part test:

What Industries Qualify?

Industry Examples of Qualified Activities
Manufacturing
Product development, process improvements, quality enhancements
Automotive
Designing and improving vehicle components, developing advanced safety features
Aerospace
Developing new aircraft technologies, improving aerospace systems
Electronics
Designing and improving electronic devices, developing innovative circuitry
Pharmaceuticals
Drug discovery, clinical trials, formulation development
Food Processing
Developing new food products, improving production processes
Software Development
Developing new software, enhancing functionality, algorithm development
Information Technology (IT)
Designing and developing innovative IT solutions, software architecture
Engineering
Creating new designs, developing prototypes, finding innovative solutions to technical challenges
Architecture
Innovative design solutions, sustainable building techniques
Construction
Developing new construction methods, optimizing building systems
Biotechnology
Genetic research, bioprocess development, medical device innovation
Life Sciences
Biological research, medical device development, clinical research
Chemicals
Developing new chemical compounds, improving manufacturing processes
Material Sciences
Developing new materials, improving material properties

What are the benefits?

How Finvisor can help?

*This calculator is just an estimate and is not an official quote or guarantee. To fully understand how much you can save please contact us.

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