What is the R&D Tax Credit?

At Hall & Company, we focus on obtaining intimate knowledge of your company’s development processes. We will tour your company’s facilities during our study to better understand your operations and research and development processes and identify areas where the R&D credit may apply. We will also conduct on-site interviews of key personnel to ensure that we are identifying all relevant activities and costs. After visiting your facilities, we will guide you through the rules supporting this credit, applying them to both product and process activities, and assist you in filing the necessary tax forms to take advantage of the credits.

In designing a new product, developing software or making improvements to a production process, your company may be able to realize significant tax and cash flow benefits from an R&D tax credit study at both the federal and state levels..

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What Qualifies for the R&D Tax Credit?

  • New Products
  • Computer Software
  • Techniques
  • Inventions
  • Processes
  • Building Prototypes
  • Formulas
  • Enhanced features to existing products, technologies or materials

Other related activities:

  • Designing and developing computer software and software applications
  • Designing or developing new or enhanced products
  • Designing and developing of tools, fixtures or molds
  • Developing control programs/logic controllers
  • Developing packaging to improve product quality
  • Developing cost/energy efficient manufacturing processes
  • Increasing operating and economic efficiencies
  • Improving nutritional content of food products
  • Alternative materials testing
  • Integrating new materials to improve product performance and manufacturing processes
  • Prototype modeling

What are the Benefits for the R&D Tax Credit?


By Taking advantage of this tax credit, your company will benefit by potentially obtaining cash refunds from previously filed income tax returns or reducing current or future tax liabilities.

Tax Credit

You will learn what documentation is necessary in order to identify and capture current and future tax credits.


We can also analyze R&D tax credit positions for the purpose of FIN 48 implementation.

Eligible small businesses and startups are now able to elect up to $250,000 (per year) of their qualifying research expenses to offset the FICA employer portion of their payroll tax. To qualify for the payroll tax election, a business must have current year annual gross receipts of less than $5 million and must not have any gross receipts five years prior to the current year claim. The election must be made on a timely filed income tax return, including extensions. Small businesses can capture payroll tax savings of up to $1,250,000 over five years.

Interested in hearing more from our team? Click here to here from one of our esteemed associates about claiming the tax benefits associated with the R&D Tax Credit.

Mike Silvio, CPA

Director of Tax P: 949-877-8664 E: ms@hallcpas.com

Lucia Valenzuela, Senior Manager

Specialty Tax Consulting P: 949-358-6793 E: lv@hallcpas.com

R&D Tax Credit

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