R&D Tax Credits · Section 41 & 174

Your R&D Already
Happened. Now Get Paid For It.

Most companies leave hundreds of thousands on the table in unclaimed R&D tax credits. CreditLab finds every dollar you're owed — and you pay nothing until we do.

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CPA-Certified Studies
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Full Audit Defense Included
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No Credit, No Fee
$100M+
Credits Claimed
500+
Businesses Served
$500K
Max Annual Payroll Offset
24hr
Free Estimate Turnaround

Three Steps to Cash Back

No disruption to your operations. We handle the complexity so you don't have to.

Step 01

Free Feasibility Check

Tell us about your business. In 24 hours we'll confirm whether you qualify and estimate your potential credit — at zero cost.

Step 02

CPA-Certified Study

Our certified public accountants build a fully defensible R&D tax credit study — documenting qualifying activities, expenditures, and calculations to IRS standards.

Step 03

Claim & Defend

File with confidence. Every study includes full audit defense — if the IRS ever asks questions, our team handles it at no additional cost.

The IRS Audit Myth,
Exposed

Many companies avoid R&D credits out of fear that filing will trigger an audit. The data tells a very different story — and we've got you covered either way.

🛡 Full Audit Defense Guarantee

Every CreditLab study is prepared by certified CPAs and includes complete audit defense at no extra charge. If the IRS questions your credit, our team steps in and handles the entire process — documentation, correspondence, and representation. You don't lift a finger.

0.4%

Overall IRS Audit Rate

Fewer than 1 in 200 returns are audited. For small businesses under $400K revenue, the rate is even lower.

No.

R&D Credits Don't Trigger Audits

Filing for the R&D credit does not automatically flag your return. The audit rate for R&D claimants is consistent with the general population when studies are properly documented.

20yr

Credit Carry-Forward Window

Unused credits can be carried forward for up to 20 years. Even if you're not profitable yet, the credits don't expire.

How the IRS Defines
Qualifying R&D

Under IRC Section 41, a project qualifies for the R&D tax credit if it meets all four parts of the following test. The bar is much lower than most people think.

Part 1 of 4

Permitted Purpose

The activity must aim to create a new — or improve an existing — product, process, software, technique, formula, or invention.

ExampleA manufacturer redesigns a production line to reduce waste by 15%. That's a process improvement — it qualifies.
Part 2 of 4

Technological in Nature

The work must rely on principles of engineering, physics, biology, chemistry, or computer science. You don't need a lab — applied science counts.

ExampleA software company builds a new algorithm to improve search speed. That's computer science applied to a product — it qualifies.
Part 3 of 4

Technological Uncertainty

At the start of the project, there must be uncertainty about the method, capability, or design. If the outcome was guaranteed, it's not R&D.

ExampleA food company tests 12 formulations to achieve shelf-stable packaging. They didn't know which would work — that uncertainty qualifies.
Part 4 of 4

Process of Experimentation

You must evaluate alternatives through modeling, simulation, systematic trial and error, or other testing. Documenting what you tried (and what failed) is key.

ExampleA construction firm tests three different structural designs through load simulations before selecting one. That iterative testing qualifies.

This is why R&D credits apply to far more industries than most people expect. You don't need a patent. You don't need a lab. You just need to have faced a technical challenge and worked to solve it.

R&D Credits Aren't Just
for Lab Coats

Every industry below passes the Four-Part Test. Here's how.

Manufacturing

Developing new production methods, improving tooling, automating assembly lines, or refining material formulations all count as qualifying R&D.

Qualifying activities

Process optimization, prototyping, custom tooling design, quality improvement initiatives

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Software & Technology

Building new features, improving system architecture, developing algorithms, or creating internal tools — your dev team is generating credits.

Qualifying activities

New product development, platform migrations, API integrations, performance optimization

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Construction & Engineering

Innovative building techniques, structural design challenges, environmental compliance solutions, and custom fabrication are all eligible.

Qualifying activities

Design-build projects, structural problem-solving, sustainable methods, BIM development

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Life Sciences & Biotech

Clinical trials, drug formulation, medical device development, and laboratory process improvements are core qualifying activities.

Qualifying activities

Clinical research, compound testing, regulatory compliance development, lab automation

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Food & Beverage

New recipe development, shelf-life testing, packaging innovation, and production scaling efforts qualify under Section 41.

Qualifying activities

Product formulation, nutritional optimization, process scaling, quality assurance testing

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Architecture & Design

Designing energy-efficient buildings, developing new structural systems, and integrating smart building technologies all count as R&D.

Qualifying activities

Sustainable design, structural innovation, computational design, new material application

See If Your Company
Passes the Test

Enter your company website and our AI analyst will review your work and break down exactly how it maps to the IRS Four-Part Test — in seconds.

1

Enter Your Website

Just paste your company URL — we'll review your services, projects, and capabilities.

2

Get Instant Analysis

Our AI maps your activities to each part of the IRS Four-Part Test and explains why they qualify.

3

Get Your Full Estimate

Ready to claim? Fill out the form below and we'll deliver a dollar estimate within 24 hours.

Four-Part Test Analyzer

Enter your company website below and we'll analyze your work.

Reviewing your website and analyzing against the Four-Part Test...

Find Out What
You're Owed

Fill out the form and our CPA team will deliver a no-obligation estimate within 24 hours.

100% Free Assessment

No cost, no commitment. We'll tell you straight if you qualify.

CPA-Certified Studies

Every study is prepared and signed by certified public accountants.

Full Audit Defense Included

If the IRS ever questions your credit, our team handles everything at no additional cost.

Retroactive Up to 3 Years

You may be able to claim credits for previous tax years too.

Get Your Free 24-Hour Estimate

Our CPA will estimate your potential R&D credit entitlement based on your team size, project complexity, and any external consultants you use.

How many employees are involved in design or technical work? (e.g. architects, designers, technical staff)

What's the typical salary range for these employees?

Roughly what portion of your team's work involves custom designs, complex site constraints, or solving unique technical challenges?

e.g. projects where the design isn't straightforward and requires problem-solving or adaptation

Roughly how much do you spend annually on external consultants? (e.g. engineers, specialists)

No detailed financials needed, just quick estimates. No obligation.

Frequently Asked Questions

Everything you need to know about R&D tax credits and how CreditLab works.

If your company develops or improves products, processes, software, formulas, or techniques, you likely qualify. The IRS definition is much broader than most people think — no lab or patents required. Our free estimate confirms eligibility in 24 hours.
No. This is the most common myth. Filing for the credit does not automatically trigger an audit. The overall IRS audit rate is approximately 0.4% — fewer than 1 in 200 returns. R&D claimants with properly documented, CPA-prepared studies are not audited at higher rates. And even in the unlikely event of an audit, our full audit defense guarantee means we handle everything at no extra cost.
Every CreditLab study is prepared and certified by licensed CPAs with deep experience in R&D tax credits. This ensures your study meets the highest standard of credibility and is fully defensible in the event of IRS review.
There's no cap on the Section 41 credit amount. The actual value depends on your qualifying expenditures, but startups can offset up to $500,000 annually in payroll taxes alone. Most clients are surprised by how much they're leaving on the table.
Yes. Depending on your filing status, you may be able to claim R&D credits for up to three prior tax years through amended returns. Our team reviews your historical eligibility as part of the study.
Startups and companies operating at a loss can still benefit. You can use R&D credits to offset payroll taxes (up to $500K/year for qualifying startups) and carry forward unused credits for up to 20 years until you're profitable.
Since 2022, the IRS requires businesses to capitalize and amortize R&E expenditures over 5 years (domestic) or 15 years (foreign). We ensure your company is fully compliant while maximizing your credits.

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on the Table

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