R&D Tax Credits

How long does it take to claim the R&D tax credit?

Most R&D tax credit studies take between 4 and 8 weeks to complete, depending on the complexity of the company’s operations and the availability of documentation. The timeline is primarily influenced by how quickly financial and technical information can be gathered and validated.

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Expanded Answer

What is the process and timeline for claiming R&D tax credits?

Claiming the R&D tax credit involves identifying qualified research activities, calculating eligible expenses, and preparing documentation that meets IRS substantiation requirements. This includes reviewing payroll records, analyzing financial data, conducting technical interviews, and applying the appropriate calculation method under Section 41.

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The timeline depends on the company’s internal organization and the complexity of its development work. Once completed, the credit is filed with the company’s federal tax return using Form 6765, or through an amended return if claiming retroactively. Source: https://www.irs.gov/forms-pubs/about-form-6765

What Qualifies

Activities that commonly qualify

Developing new software features or platform capabilities

Improving performance, scalability, reliability, or security

Building internal tools or technical workflows that required experimentation

Testing different technical approaches to solve engineering challenges

What Does Not Qualify

Work that usually does not qualify

Routine bug fixes with no technical uncertainty

Visual-only updates or minor design changes

Marketing, sales, and customer support work

General maintenance that did not require experimentation

Work already solved through an off-the-shelf implementation

Example Case Study

Example of an R&D tax credit study timeline

A technology company begins the process by gathering payroll data and identifying its key development projects across engineering teams. Over the next several weeks, interviews are conducted to understand the technical challenges and determine which activities meet IRS criteria.

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After compiling documentation and calculating qualified expenses, the company finalizes the credit and prepares it for filing. The entire process is completed within six weeks, aligning with typical timelines for well-organized companies.

Quick takeaway

If your team had to work through technical uncertainty, there is a good chance the work deserves a closer look.

Common Industry Examples

Gathering payroll data, general ledger details, and supporting financial records

Identifying and organizing qualifying technical projects across departments

Conducting structured interviews with engineering or technical personnel

Reviewing documentation to support the IRS four-part test requirements

Preparing and filing Form 6765 with accurate calculations and supporting data

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Curious if you are missing out on credits?

Start with a quick eligibility check. If it looks promising, we move to a light info request and one technical interview.

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