← Back to Prosperity Business
●  R&D TAX CREDITS  ·  Go Back 3 Years  ·  36 States + Federal  ·  No Upfront Cost  ·  CALL JIM: (619) 361-1825
R&D Tax Credits

Your Business Is Already Doing R&D.
The IRS Will Pay You for It.

Most business owners think R&D credits are only for pharmaceutical companies and Silicon Valley startups. They're wrong. If you've improved a product, process, formula, or piece of software in the last three years, you likely qualify — and you can go back and collect what you're owed.

✓ Go Back 3 Years ✓ 36 States + Federal ✓ No Upfront Cost ✓ Audit-Insured CPAs ✓ No Profit Required
📚 Get the Free Playbook 📅 Book a Call with Jim
3
Years of prior returns you can amend to claim missed credits
36+
States with their own R&D credits that stack on top of federal
$0
Upfront cost — you pay only when credits are generated
$1M
Calculation accuracy guarantee on every study completed
No Profit Required
Unprofitable companies can offset payroll taxes or carry credits forward — you don't need to be making money to qualify
See It in 60 Seconds

R&D Tax Credits Explained in 1 Minute

Before we get into the details, watch this quick overview. If you've ever improved anything about how your business operates, this video is for you.

The IRS 4-Part Test

Do You Qualify? Here's How the IRS Decides.

The IRS uses a four-part test to determine R&D credit eligibility. You don't need to pass all four with flying colors — you need to demonstrate that your activities were generally aimed at these goals.

01

Permitted Purpose

The activity must be intended to develop or improve a product, manufacturing process, software, technique, formula, or invention — for functionality, performance, reliability, or quality.

02

Elimination of Uncertainty

The work must be intended to discover information to eliminate technical uncertainty about whether or how something can be developed or improved.

03

Technological in Nature

The activity must rely on principles of physical sciences, computer sciences, chemistry, biological sciences, or engineering. "We tried something new" qualifies — it doesn't need to be a lab.

04

Process of Experimentation

The work must involve modeling, simulation, systematic trial and error, or other methods of evaluating alternatives. Testing a new recipe, process, or design counts.

What Counts as R&D

You're Probably Already Doing This

Most business owners are surprised to learn that activities they consider "just part of the job" qualify as R&D under the tax code. Here are common examples.

🌾

Farming & Agriculture — Developing new crop treatments, soil amendments, irrigation methods, or livestock management techniques

🍷

Wineries, Breweries & Distilleries — Experimenting with fermentation, barrel aging, blending formulas, or new product lines

🏗️

Construction & Architecture — Developing new building methods, precast concrete designs, or structural engineering solutions

🏭

Contract & Food Manufacturing — Improving production processes, formulations, packaging, or quality control methods

💻

Software Development — Building new platforms, client-facing tools, automation systems, or proprietary algorithms

⚙️

Metal Fabrication & Machining — Developing new tooling, machining processes, or automated production line configurations

🤖

Electronics & Robotics — Designing new circuits, control systems, robotic automation, or industrial machinery

🧪

Advanced Materials & Plastics — Experimenting with new compounds, coatings, injection molding processes, or material properties

⚡

Energy & Distribution — Developing new energy systems, logistics optimization, or distribution technology

🌿

Hemp Production — Developing cultivation techniques, extraction processes, or new product formulations

🚗

Automotive Suppliers — Designing new components, testing new materials, or developing manufacturing process improvements

📊

Digital Marketing & Blockchain — Building proprietary software platforms, programmatic tools, or cryptocurrency infrastructure

Don't Leave 3 Years of Credits on the Table

Most businesses that qualify have never claimed the R&D credit — which means there are potentially three years of amended returns sitting uncollected. Here's what that means for you:

📅

3-Year Lookback

Amend prior-year federal returns to claim credits you never knew you qualified for

🗺️

36 States + Puerto Rico

State R&D credits stack on top of the federal credit — many businesses qualify for both

💼

No Profit Required

Unprofitable companies can offset payroll taxes or carry credits forward to future years

🔒

Closed Businesses

Even closed businesses can amend prior profitable years to claim a refund

Industries That Qualify

Is Your Industry on the List?

This is a partial list of industries that regularly qualify for R&D tax credits. If your industry isn't listed, it doesn't mean you don't qualify — it means you should ask.

Architecture
Civil Engineering
Contract Manufacturing
Farming & Agriculture
Hemp Production
Food Manufacturing
Wineries & Breweries
Distilleries
Energy & Gas
Distribution & Logistics
Mining
Injection Molding / 3-D Printing
Plastics & Rubber
Construction
Precast Concrete
Advanced Materials
Software Development
Digital Marketing Software
Blockchain / Crypto
Automotive Suppliers
Metal Fabrication
Electronics & Robotics

Don't see your industry? Call Jim at (619) 361-1825 — a free eligibility check takes less than 15 minutes.

Common Questions

The Questions Every Business Owner Asks

Straight answers — no jargon.

Yes. Profitability does not affect qualification. If you are not profitable, you can either apply the credit against your payroll taxes (if you have less than 5 years of gross receipts history and less than $5MM in gross receipts for the year), or carry the credits forward until you have regular tax liability. You don't need to be making money to qualify.
Yes. Closed businesses may amend tax returns from previous years to claim R&D credits, provided the business was profitable and paid taxes in those years. This can result in a refund even after the business has closed.
The amount varies based on your qualified expenses, historic R&D spend, and which calculation method is used. There is no maximum limit on the credit amount. The payroll tax offset is capped at $250,000 per year — any excess is applied to your regular tax liability. The only way to know your number is to run the analysis, which costs nothing upfront.
For the current tax year, the credit is applied directly to your tax liability on your corporate return — you see the benefit immediately in your final tax due. For amended prior-year returns, the IRS typically processes amended claims within 6 to 9 months.
CPAs are generalists. They handle hundreds of different tax situations every year and are expected to have broad knowledge across all of them. The R&D tax credit requires deep specialization — interpreting code sections that are not always clearly defined. It's not uncommon for CPAs to refer this work out to specialists, and many simply don't bring it up because they don't handle it themselves.
Yes. Employee salaries are only one of the qualified expense categories. Supplies and materials, outside contractors, and cloud computing costs also qualify as Qualified Research Expenditures (QREs). Not having W-2 employees does not disqualify you.
Full audit defense is included at no additional charge. Our nationwide CPA team is fully insured and will handle direct discussions with the IRS on your behalf, advising you every step of the way. You are never left to navigate an audit alone.
There is no upfront cost. Our fee is 20% of the tax credits generated if the credit exceeds $20,000, or 25% if under $20,000. If there is no tax benefit, there are no fees. The fee is also tax deductible. You are always guaranteed a positive return on investment — and the $1 million calculation accuracy guarantee backs that up.
You receive a comprehensive 30–60 page study report including: Form 6765 (federal R&D credit form), any applicable state R&D credit forms, Qualified Research Expense (QRE) summaries for each expense category, calculated workpapers, and a filing instructions guide. Everything your CPA needs to file is included.
How It Works

Three Steps. No Upfront Cost. Full Audit Defense.

The entire process is handled by a nationwide team of CPAs licensed in every state. You provide the data; they do the work.

Step 1

Check Eligibility

Answer basic questions to determine whether your company qualifies and which credit utilization option is best — regular tax offset or payroll tax offset. Preliminary estimated results are discussed before you commit to anything.

Step 2

Input Your Data

An R&D tax credit Onboarder Expert guides you through inputting your data into the calculation software. The process is supported step-by-step — you're never doing this alone.

Step 3

Receive Your Study

Your final 30–60 page study is delivered with complete report, draft tax forms, and filing instructions. Federal and state forms are included. Full audit defense is built in from day one.

Transparent Pricing

No Benefit, No Fee. Period.

Our fee structure is simple and always works in your favor. You pay only when you benefit — and the fee itself is tax deductible.

Credits Over $20,000
20%
of credits generated

Paid 7 days after receiving your full study and forms. No payment until the work is done and delivered.

Credits Under $20,000
25%
of credits generated

Payment plan available: 12 monthly payments at 1% per month interest. Same no-benefit, no-fee guarantee applies.

✅ No upfront payment  |  ✅ Fee is tax deductible  |  ✅ $1 million calculation accuracy guarantee  |  ✅ Full audit defense included

If there is no tax benefit, there are no fees. Zero risk to you.

The Business Owners Tax Savings Playbook

📚 Want the Full Picture?

Download the free Business Owners Tax Savings Playbook — it covers R&D Credits, Section 125, FICA Tip Credits, and more in plain English.

Get the Free Playbook →
Jim Saar — Business & Financial Consultant, Prosperity Business
Jim Saar
Business & Financial Consultant
Prosperity Business
📞 (619) 361-1825

📅 Book a Free Call
Ready to Find Out What You're Owed?

A Free Eligibility Check. No Commitment.

The first step is a quick eligibility conversation — typically 15 to 30 minutes. Jim will connect you with the nationwide CPA team, walk you through what qualifies in your industry, and give you a preliminary estimate before you make any decision.

The CPA team is licensed in every state, fully insured against audits, and has completed studies for businesses in agriculture, manufacturing, technology, construction, food and beverage, and dozens of other industries.

“Most of the business owners I talk to have been doing R&D for years without knowing it. A farmer experimenting with a new crop treatment is doing R&D. A brewer developing a new fermentation process is doing R&D. The IRS built this credit to reward exactly that kind of innovation — and most people are just leaving the money on the table.”
— Jim Saar, Prosperity Business

📅 Book My Free Call with Jim

The IRS Built This Credit for Businesses Like Yours.
Start Collecting It.

Go back three years. Stack your state credits. Pay nothing upfront. Get started with a free eligibility check today.

📚 Download the Free Playbook 📅 Book a Call with Jim

No upfront cost. No obligation. Full audit defense included. Nationwide CPA team licensed in every state.