How Much Can My Company Claim Via The R&D Tax Credit?

Tax Day 2023 is arriving at a precarious moment for innovative American companies. The last year has seen a wave of layoffs and a loss of value for many companies in industries like tech, manufacturing, and many other sectors. On top of that, changes to tax law with regard to R&D Capitalization have massively changed what companies will owe the IRS in April or October. That’s why it’s never been more beneficial for innovative companies to claim the R&D Tax Credit. 

The federal R&D tax credit is a 10% cash-back credit for product development expenses. Startups with <$5M revenue and <5 years of revenue can apply up to $250k against payroll taxes. All companies can apply it against income taxes or carryforward. Neo.Tax has built a software solution that maximizes your credit and prepares your filing in <30 minutes. 

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But how much is an R&D credit really worth to your business?

Here are four examples based on real companies to give you a better sense of the massive value of filing for the credit with Neo.Tax.

A reminder from Neo.Tax:

Based on new guidance from the IRS, it seems likely there will be a more stringent view of amended returns — the burden of proof is on the company and will need to be even more detailed — which means waiting to amend the returns may become more expensive and cumbersome going forward.

So, make sure to file your credit with your taxes (or to file an extension so you can get your R&D credit for this year). Book a call and we can walk you through all the ways to make R&D spend valuable for your innovative company!