The R&D tax credit
Reduces your tax bill, dollar for dollar. A $10,000 R&D credit saves you $10,000.
$10,000 credit = $10,000 saved
You don’t need a laboratory to qualify for the R&D (Research & Development) tax credit. If you’re improving processes, developing prototypes, or solving technical challenges in your work, you may already be doing work that qualifies.
Our strategic tax planning helps business owners in Maine, New Hampshire, New York, and nationwide find thousands in tax savings.
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Most business owners hear “R&D tax credit” and assume it's for startups or pharmaceutical companies. It’s not. It was designed for exactly the kind of work you’re already doing, and the payoff is bigger than most people expect.
Reduces your tax bill, dollar for dollar. A $10,000 R&D credit saves you $10,000.
$10,000 credit = $10,000 saved
Reduces your taxable income. In a 25% tax bracket, a $10,000 deduction saves you $2,500.
$10,000 deduction = $2,500 saved
The IRS uses four questions to determine whether your work qualifies. If you can say “yes” to all four, we can help you build a credit.
Was there a technological uncertainty? You didn’t know for certain that your process, product, or design would work the way you intended.
Did you experiment? You tried different approaches or refined your method to reach the result.
Was it technical in nature? Your process relied on engineering, physical science, or computer science.
Was the goal to improve a product or process? You were trying to make something work better, faster, cheaper, or more efficiently.
“We'd been leaving R&D credits on the table for years because our old accountant never brought it up. Cultivate found them, and their WIP reporting means I actually know our margins on a job before it closes instead of guessing until year-end.”
We specialize in uncovering R&D credits across four industries. We regularly find qualifying activities that clients had no idea were eligible. Find your industry below to see what might apply to your business.
Claiming the R&D credit requires documentation for the IRS. Our tax consulting team handles every step of the process, from identifying what qualifies to making sure you could stand behind the credit in an audit. You focus on your business while we handle the heavy lifting.
We start by reviewing your operations to identify every activity that clears the IRS’s four-part test. We look at what your team does. Most clients are surprised by how much work qualifies.
We calculate your Qualified Research Expenses (employee wages, supply costs, contract research) that the IRS allows you to count toward the credit. The size of your credit depends on the accuracy of these numbers. This is where clean books pay off.
We write the technical reports the IRS requires to support your claim, and the result is a complete audit defense bundle. If your credit is ever questioned, you’ll have everything you need to back it up.
To maximize your credit, your entire financial ecosystem needs to be working together. Three of our services have a direct relationship to the size of your R&D credit.
We look ahead to see how your credit can be applied across your entities, timed against your other tax liabilities, and directed toward your cash flow or retirement goals.
Explore tax planning & strategyRaw materials and supplies used during qualifying R&D activity count toward your Qualified Research Expenses. We build the inventory costing and WIP reporting systems that capture those costs, so every dollar of qualifying material makes it into your claim.
Explore inventory costing & valuationEmployee wages are typically the largest component of an R&D claim. That means your payroll records are the financial backbone of your documentation. As HR consultants, we track the qualifying time your team spends on eligible work.
Explore HR services & supportSchedule a brief discovery session (no prep required) to find out if your recent projects qualify for the R&D tax credit. Most business owners wish they would’ve called sooner.
Disclaimer: This is not tax advice. Businesses should consult with their tax advisor to determine eligibility and applicable regulations.