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Fueling Innovation: R&D Tax Credits for Business Growth
A federal incentive to promote business investment in research and development.
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R&D Tax Credit
The Research and Development (R&D) Tax Credit is a tax incentive provided by the federal government to encourage businesses to invest in research and development activities. The credit is intended to help businesses offset the costs of developing new products, processes, software, or improving existing ones. The R&D Tax Credit is available to businesses of all sizes and industries, and it can be claimed by businesses that are conducting R&D activities in the United States.
Who qualifies?
The R&D Tax Credit can be a valuable resource accessible to businesses across diverse sizes and industries engaged in qualified research within the United States.

You may be eligible if you are:
Innovating new products or processes from scratch
Upgrading or improving existing products or processes
Refining or optimizing existing prototypes and software
Experimenting with new ideas or technologies to advance a product or process
Conducting research to solve problems or remove uncertainties in product or process development
Four-Part Test
To be eligible for the credit, R&D activities must meet IRS criteria known as the four-part test to:
Demonstrate you’ve attempted to eliminate uncertainty about the development
Establish you underwent a process capable of evaluating alternatives
Prove your experimentation relies on science
Demonstrate the research intended to create a new or improved business component
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Step 1
Consultation with a tax expert to gather basic information
Step 2
Assessment and estimates based on specific documents and information gathered
Step 3
Comprehensive R&D study based on the 4-part test and ensuring QREs are accurate
Step 4
Detailed memorandum supporting your claim  
Step 5
Receive your R&D Tax Credit from the IRS
Step 6
R&D study review for upcoming years to increase efficiency
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Seasoned experts with a proven track record of assisting companies across a spectrum of industries in securing R&D tax credits.
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No upfront costs to your business
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Claim credits for open tax years dating back up to three years.
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Increase cash flow when credit is received
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Federal and state dollar-for-dollar income tax reduction
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Reduce your effective tax rate
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Your Estimated Qualifying R&D Expenses
Your credit from the IRS can be up to 20% of your qualifying R&D expenses depending on jurisdiction, business size, and other factors.
*This is an estimate of your credit amount, not a binding quote..
Your estimated qualifying R&D expenses per year
What of your R&D expenses help you:

(1.) Eliminated technical uncertainty of a product or service you offer,
(2.) Include experimentation (systematic trial and error) to eliminate technical uncertainty,
(3.) Rely on hard sciences (including computer science) for experimentation,
(4.) To create a new or improved process?
Total estimated R&D expenses
The R&D Tax Credit is a federal incentive promoting business investment in research and development.

*This is an estimate of your refund, not a binding quote.
Thank you! Your submission has been received!
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Calculate Estimate R&D Credit Amount
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Frequently asked questions
What activities qualify for the R&D Tax Credit?

The R&D Tax Credit typically applies to activities involving the development or improvement of products, processes, or software, where there's a focus on technical challenges and a systematic approach to innovation and problem-solving. This credit can encompass a wide range of industries and activities. 

How is the R&D Tax Credit calculated?

The credit can equal up to 20% of the eligible research expenses that the business has incurred. This credit can be applied to a portion of these expenses, and the exact percentage is contingent on the jurisdiction, business size, and other factors and can vary.

The specific amount of R&D tax credit a company can assert is contingent upon various factors.

Companies that haven't previously availed of this credit also possess the opportunity to retrospectively examine all accessible tax years—typically spanning three to four years, dependent on the timing of tax return submissions—to claim any overlooked prospects.

In cases where a company's existing taxable income is absent or there are other limitations on utilizing the tax credit, the federal tax credit can be carried over for a span of 20 years or potentially utilized to offset the federal payroll tax of the company, as per the recently expanded regulations. State-level credits might similarly be carried over for a duration dictated by the respective state's guidelines.

How to determine R&D Eligibility?

The scope of eligibility for the R&D tax credit is often broader than many companies realize. It's not just about making new products – it also includes things like improving manufacturing processes, creating software, and making things better in general. Even startups can use this credit to reduce their payroll taxes for up to five years.

If your company:

  • Devotes time and resources to creating new or innovative products
  • Improves existing products
  • Develops processes, patents, prototypes, or software
  • Hires designers, engineers, or scientists

Then you might be able to get the R&D tax credit. You could even get credit for the last three years, depending on when you filed your taxes. And if your company isn't making a profit, you might be able to go back even further. Some states are even more lenient with their rules for going back in time.

How can my organization claim the R&D Tax Credit?

To claim the R&D Tax Credit, businesses must complete Form 6765 and attach it to their federal income tax return. The form includes instructions on how to calculate and claim the credit.

Is the R&D Tax Credit available to startups and small businesses?

Yes, the R&D Tax Credit is available to businesses of all sizes, including startups and small businesses.

How could your company benefit from the R&D Tax Credit?

This credit offers a direct, one-to-one reduction in a company's tax obligation, resulting in dollar-for-dollar tax savings. The extent of expenses and credit claimed each year is unrestricted. Should the federal R&D credit not be fully utilized immediately, any remaining credit can be applied to the preceding year's taxes or carried forward for a span of up to 20 years. Individual states have their own guidelines for credit carryovers.

Consistently, the R&D tax credit serves as a valuable resource, providing a supplemental source of funds for a diverse range of businesses—equating to as much as 10% of annual R&D expenditures for federal purposes, and even more when considering state-level credits.

Manufacturing Qualifications

Typical Qualifying R&D Credit Activities for Manufacturers

  • Improving product quality
  • Development of second generation or improved products
  • Product development using computer aided design tools
  • Tooling and equipment fixture design and development
  • Optimizing manufacturing processes
  • Designing manufacturing equipment
  • Prototyping and three-dimensional modeling
  • Alternative material testing
  • Designing and developing cost-effective operational processes
  • Integrating new materials to improve product performance and manufacturing processes
  • Designing and evaluating process alternatives
  • Evaluating and determining the most efficient flow of material
  • Designing, constructing, and testing product prototypes
  • Increasing manufacturing capabilities and production capacities

Software Qualifications 

Typical Qualifying R&D Credit Activities for Software Developers

  • Improving product quality
  • Programming software source code
  • Designing and developing the structural software architecture
  • Establishing electronic interfaces and functional relationships between various software modules
  • Conducting requirements, domain, software elements, or scope analysis for a new functional software enhancement
  • Evaluating and establishing functional specifications
  • Conducting unit, integration, functional, performance and regression testing
  • Compiling and testing source code
  • Developing new or improved technologies

Construction Qualifications 

Typical Qualifying R&D Credit Activities for Software Developers

  • Value engineering
  • Improving the overall construction process to increase efficiencies
  • Design/build projects
  • Pre-construction planning
  • Development of means and methods for hard-bid jobs
  • Green building design/LEED certification
  • Energy-efficient design or improvement
  • Experimenting with new material combinations and evaluation of their performance properties
  • Development of innovative assembly of construction methods that accelerate or improve the construction process
  • Dew point analysis to determine location and type of vapor barrier for walls, roofs and floors
  • Designing HVAC systems for airflow and energy efficiency
  • Designing electrical systems for efficient power usage
  • Plumbing system design for efficient water usage
  • Lighting system design for energy efficiency
  • Drainage/storm management water management design
  • Using building information modeling (BIM)
  • High-tech equipment installation
  • Plant production system design

Engineering Qualifications  

Typical Qualifying R&D Credit Activities for Engineers

  • Building information modeling
  • Determining alternative structural design
  • Improving or determining alternative heating and cooling systems
  • Improving or developing alternative ventilation for a structure
  • Developing or improving lighting within a structure
  • Developing alternative electricity conduction systems
  • Developing alternative water flow / plumbing systems
  • Toxic waste and other waste disposal processes integrated into the structure
  • Integrating transportation systems into the functional design of the structure
  • Sustainable design
  • CAD Modeling
  • New technology
  • Space utilization
  • Design testing
  • New materials
  • Environmental design
  • Environmental impact studies
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Satisfied Clients

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"This ERC tax credit is truly a huge blessing to our School! We thought it couldn't hurt to see what we might be eligible for so we went ahead with it. Wow! We are so glad we did! The team at One Eagle Advisory was so helpful to work with!"
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Michael F.

Finance Director, Private Academy

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“I had a fantastic experience with One Eagle Advisory. Communication was the key for me. They were responsive, answering all my questions and patiently guiding me through the process. They made everything clear, from the requirements to the timeline. Trust was also important, and I felt confident in their expertise. I highly recommend!”

Patty G.

CFO, Church

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“I am so thankful that I chose One Eagle Advisory. The way you worked with me and the professionalism and expertise was not lost on me. Your tax professionals do indeed know what they are doing. My recommendations to others come from that place. You have NO IDEA what this ERC has done for us... it's a life line!”

Andrea S.

Owner, Beauty Salon

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"Communication was top-notch throughout the process. There was a lot of back and forth to make sure they truly grasped our specific business circumstances and the effects of COVID on our operations. And you know what? They didn’t leave us hanging - we received comprehensive documentation showcasing all the work that was done. Personally, I really appreciated that attention to detail."

Kristina M.

CEO, Dental Clinic

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"What really impressed me in our first phone call with One Eagle was how they asked all the right questions from the get-go. They went beyond just revenue and dug deep into how the pandemic affected our business. Working with them was a breeze, and the amount of information they provided in their documentation was mind-blowing. When we finally received our credit, we were over the moon – excited, relieved, and grateful."

Brian P.

President, Owner, Home Care Services

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"We chose to work with a partner that understood the program fully. They made sure that we filed on time, they’re tracking our refund, and made it really really easy for us to go through the process. I strongly encourage you to visit their website and give them a call. They can even take your current or filed applications and audit them to make sure you’re getting full credit you deserve"
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Brian D.

Manager, Motel & Restaurant

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"I recently used the services of One Eagle Advisory and I'm really happy that I chose them. They provided expert advice and guidance throughout the entire process, and they answered all of my questions quickly and accurately. They also managed to process things quickly and without any complications. I was impressed with their professionalism and level of customer service. I would highly recommend working with their team"
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John W.

Owner, Construction Company

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"Our bookkeeper and I had a delightful meeting with One Eagle, and we were pleasantly surprised by how effortless it was to work with them. They created a relaxed and stress-free environment. There's still time to claim these funds and I highly recommend working with them"
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Julie T.

Principal, Charter School

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"This ERC tax credit is truly a huge blessing to our School! We were actually discouraged by some to go through with the filing, but thought it couldn't hurt to see what we might be eligible for so we went ahead with it. Wow! We are so glad we did! The team at One Eagle Advisory was so helpful to work with!!"
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Michael F.

Finance Director, Private Academy

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"We were able to effortlessly secure the employee retention credit (ERC) with the help of One Eagle Advisory. Throughout the entire process, my rep was excellent, keeping me informed every step of the way. I can't stress enough how at ease I felt with their guidance. Kudos to them for a job well done!"
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Adam G.

Owner, Training Camp

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"I had a fantastic experience with One Eagle Advisory. Communication was the key for me. They were responsive, answering all my questions and patiently guiding me through the process. They made everything clear, from the requirements to the timeline. Trust was also important, and I felt confident in their expertise. I highly recommend!"
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Patty G.

CFO, Church