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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Expert-Prepared Studies
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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

Expert R&D Study

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

Step 03

Claim Your Credits

File with confidence. Our R&D experts prepare a fully defensible study that stands up to IRS scrutiny. You claim, we support.

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

R&D Credit Calculator

Get your estimated R&D tax credit instantly — takes less than 30 seconds.

Select your industry so we can tailor the questions to your business.

Quick select Exact numbers

Employees involved in developing or improving products or processes. Exclude routine work and administrative roles.

Average annual salary of the technical employees included above.

Percentage of time spent developing or improving products or processes. Exclude routine or repetitive work.

Annual payments to external contractors involved in developing or improving products or processes. Exclude routine work and non-technical services.

Cost of materials used for prototyping, testing, or experimentation. Exclude routine work and materials for resale.

Share a few details about your projects or processes — we'll use this to improve your estimate.

You'll also receive a personalized breakdown within 24 hours.

Real Credits. Real Businesses.

A sample of R&D tax credits claimed by companies just like yours. Names withheld for confidentiality.

$127,000
Annual federal credit claimed
8-employee CNC machining firm developing custom tooling and automated manufacturing processes for aerospace components.
Manufacturing · Midwest
$84,500
Annual federal credit claimed
12-person architecture firm specializing in sustainable design and energy-efficient commercial buildings across 3 states.
Architecture · West Coast
$215,000
Annual federal credit claimed
General contractor with 22 employees running complex commercial build-outs including medical facilities and restaurant fit-outs.
Construction · Southeast
$43,000
Annual federal credit claimed
6-person artisan food manufacturer developing new fermentation processes and shelf-stable product formulations.
Food & Beverage · California
$168,000
Annual federal credit claimed
MEP engineering firm with 15 technical staff designing HVAC, electrical, and plumbing systems for commercial and institutional projects.
MEP Engineering · Northeast
$72,000
Annual federal credit claimed
Cosmetics manufacturer with 10 employees developing new skincare formulations, running stability tests, and optimizing production processes.
Cosmetics · Southeast

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.
Every CreditLab study is prepared by R&D tax credit specialists who work hand-in-hand with your CPA to ensure the 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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