R&D Tax Credits

Our R&D Tax Credit team helps businesses maximize the Section 41 research and development tax credit and develop the appropriate documentation to satisfy current and proposed IRS filing requirements.

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Recover Unclaimed R&D Tax Credits

What Is the R&D Tax Credit?

Discover how your innovative business can benefit from the research and development (R&D) tax credit. Designed to foster innovation and growth, this federal incentive rewards companies for investing in the design, development, and improvement of processes, products and services.

By engaging in qualified R&D activities in the U.S., companies can receive tax credits, providing a dollar-for-dollar reduction of income tax liabilities. Start-up companies can even leverage a portion of these credits to offset federal payroll tax liabilities. Learn how your business can save money and drive expansion through the R&D tax credit today.

What Is the R&D Tax Credit Claims Process?

While the process to apply for, and ultimately, receive cashback from the R&D tax credit is complex, our Tax Credits & Incentives Advisory team has developed a systematic approach designed to maximize your R&D tax credit and gain a solid defense against Internal Revenue Service (IRS) criticism. When assessing the potential for R&D tax credit benefits, we analyze your:

  • Tax returns for the prior four years
  • Prior research credit studies
  • Organization charts
  • Employee W-2 wage amounts
  • General ledger information time tracking data
  • Internal documents that define how potentially qualifying projects are approved

Don’t Leave R&D Tax Credits on the Table

Many companies underclaim or overlook valuable credits. A quick, no-cost assessment can help uncover missed opportunities and provide a clearer path to capturing available savings.

We can help you capture cash benefits that typically will greatly exceed the investment of this analysis. Determining which activities qualify for the R&D tax credit begins by passing the Four-Part Test created by the IRS.

How Can Cherry Bekaert’s Technology-driven Process Help?

Discover how our efficient R&D survey process, powered by our proprietary tool, simplifies the allocation of Qualified Research Expenses (QREs) across your organization. Here’s what our process entails:

Scoping the R&D Tax Credit:

  • Gather pertinent information
  • Collect financial data electronically
  • Identify QREs
  • Conduct interviews with key personnel
  • Estimate federal and state research credits
  • Prepare a comprehensive work plan for the research credit study

Performing the R&D Tax Credit Study:

  • Accumulate financial and cost accounting data
  • Organize documentation for qualified research activities
  • Interview technical subject matter experts
  • Analyze current and prior year expenses to support base amounts and credit-eligible QREs
  • Prepare methodology and interview memoranda demonstrating compliance with Section 41
  • Calculate the required capitalization of Specified Research or Experimental (SRE) Expenditures
  • Deliver IRS audit-ready documentation
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A Smarter, Defensible Approach to R&D Tax Credits

Our CPA-led team delivers a structured, tech-enabled process designed to maximize your credit while maintaining that your documentation is fully audit-ready and aligned with IRS expectations. We take a tailored, transparent approach with no contingent fees, focused on accuracy, defensibility and long-term value.

With customized work plans and deep technical knowledge and experience, we help you confidently calculate, document, and claim the tax credits you’re entitled to — often at a lower cost than contingent fee providers.

Value-added Benefits

  • Complimentary analysis of federal and state R&D tax incentive benefits
  • IRS defense services
  • R&D tax credit consultation and analysis regarding credit utilization by a company, partners and shareholders
  • Analysis of whether R&D tax credits can be used against federal and state payroll tax liabilities
  • Deliverables designed to address potential IRS inquiries
  • Proprietary technology tools to survey R&D activities
  • Identification of other tax credit benefits for alternative energy investments, hiring and capital investments

The Four-part Test for Qualifying R&D Activities

Part One: Business Component/Permitted Purpose Test

The activity must relate to a new or improved product, process or design (business component) that is intended to improve:

  • Function
  • Performance
  • Reliability
  • Quality

Part Two: Technological in Nature

The activity performed must rely on the principles of:

  • Physical science
  • Computer science
  • Engineering
  • Biological science

Part Three: Elimination of Uncertainty

The activity must be intended to discover information to eliminate uncertainty related to:

  • Capability to improve product process or design
  • Method to improve product process or design
  • Appropriateness of design

Part Four: Process of Experimentation

Substantially, all the activities must relate to:

  • Identifying uncertainty regarding the development of the product, process or design
  • Utilizing a process to evaluate one or more alternatives to eliminate the uncertainty
  • Testing, implementing trial and error, or modeling to refine or discard alternatives

Part One: Business Component/Permitted Purpose Test

The activity must relate to a new or improved product, process or design (business component) that is intended to improve:

  • Function
  • Performance
  • Reliability
  • Quality

Part Two: Technological in Nature

The activity performed must rely on the principles of:

  • Physical science
  • Computer science
  • Engineering
  • Biological science

Part Three: Elimination of Uncertainty

The activity must be intended to discover information to eliminate uncertainty related to:

  • Capability to improve product process or design
  • Method to improve product process or design
  • Appropriateness of design

Part Four: Process of Experimentation

Substantially, all the activities must relate to:

  • Identifying uncertainty regarding the development of the product, process or design
  • Utilizing a process to evaluate one or more alternatives to eliminate the uncertainty
  • Testing, implementing trial and error, or modeling to refine or discard alternatives
Case Study

Maximizing Tax Efficiencies for Online B2C Platform

Cherry Bekaert's R&D Tax Credits team helped a rapidly growing online platform secure significant tax savings, totaling $220,000 in 2022 and $740,000 in 2023, by navigating complex state tax compliance. Their tailored solutions reduced tax liability and administrative workload, facilitating reinvestment and growth.

Our Professionals

Connect With Us

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Martin Karamon

Tax Credits & Incentives Advisory Leader

Partner, Cherry Bekaert Advisory LLC

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Vivian Kohrs

Tax Credits & Incentives Advisory

Partner, Cherry Bekaert Advisory LLC

Carolyn Smith Driscoll Headshot

Carolyn Smith Driscoll

Tax Credits & Incentives Advisory

Director, Cherry Bekaert Advisory LLC

Unlock Your R&D Credit Potential — Start with a Complimentary Assessment