The Research & Development (R&D) Tax Credit Program

Get a dollar for dollar reduction on your federal and state taxes for qualified expenses related to product and technology development.
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About the R&D Tax Credit

The Research & Development (R&D) Program is designed to reward US companies for creating innovative products and technologies.

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law — a quiet but meaningful win for businesses investing in innovation.

With enhanced expensing rules and expanded refund opportunities for small businesses, the OBBBA delivers one of the most favorable updates to R&D tax treatment in years.

Eligible R&D expenses typically include W2 payroll, certain cloud computing costs, materials, and outsourced services.

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$500,000

Annual startup eligibility - not a startup? No cap!

$30 Billion

Claimed in the US this year

10%

ROI on every development dollar spent

What the OBBBA Changes for the R&D Tax Credit

The One Big Beautiful Bill Act (OBBBA) delivers the most significant boost to R&D tax benefits in years. Since 2022, Section 174 forced businesses to spread domestic R&D deductions over five years for U.S. research and 15 years for foreign research. This tied up cash, delayed tax savings, and made planning harder for companies of all sizes.

Starting in 2025, companies can immediately expense domestic R&D costs in the year they occur or choose to amortize them over their useful life, with a minimum of 60 months. Small businesses with $31 million or less in average annual gross receipts can also claim retroactive refunds by amending 2022–2024 returns or accelerate deductions for remaining unamortized costs over one to two years starting in 2025. Larger companies are not eligible for refunds but can still accelerate past R&D deductions on the same schedule.

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R&D Tax Credit

The R&D Tax Credit is the #1 government-funded program for growing businesses. Best of all, you can count on it every year. The IRS doles out over $30B every year. Secure your piece of the pie now!

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How We Help Turn Your R&D Credit Into Cash Savings

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We Review Your R&D Activities
We start by learning about your products, technology, and innovation work. Our team identifies projects, tasks, and initiatives that qualify under IRS guidelines — even those you might not realize count.
Track & Organize Eligible Costs
We work with you to gather and categorize all qualifying expenses, such as W‑2 payroll for technical staff, US‑based contractors, and certain cloud computing costs. This ensures no eligible dollar is missed.
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Calculate Your Credit
We calculate the maximum credit you can claim using proven methods and provide full documentation that stands up to IRS review. You’ll know exactly how much you can save before you file.
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Apply Against Your Taxes
We guide you through applying the credit to reduce your income or payroll tax liability, ensuring you see the benefit as quickly as possible.
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Keep Innovating
We help you set up a simple, repeatable process so you can claim your R&D credit year after year — fueling ongoing innovation and growth.

Customers Love the Ease and Simplicity

Stars

Amazing customer service. Appreciate the diligence around taxes and helping us receive additional credits.

Kevin Moriarty
Kevin Moriarty
Chive Media Group
Stars

Great team to work with all around!

Cruz Sierra
Cruz Sierra
Epoc
Stars

I had a great experience working with the Taxtaker team especially Maggie Hensley. They were able to answer all my questions and guide me on how to do things.

Hassan Ibrahim
Hassan Ibrahim
Tough Leaf
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They rock! So attentive and helpful. They found us 35k, what's not to love.

Alison Wiser
Alison Wiser
Wiser Wellness
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The team is amazing to work with! Fast & super efficient!

Leela Suppiah
Leela Suppiah
DataStream Cyber Insurance
Stars

TaxTaker is responsive, knowledgable, creative, and helpful.

Steve Barrows
Steve Barrows
Crosswalk Labs
Stars

The process was very efficient and the team did a great job explaining the process and executing the project.

Trevor Cook
Trevor Cook
Sirvatus
Stars

Easy to work with, very friendly staff, clear expectations of us, good value.

Randy Berridge
Randy Berridge
Industrial Resolution
Stars

Working with TaxTaker has been great for us. They were efficient and effective and got us great results. Couldn't ask for a better partner!

Ermelinda Kraft
Ermelinda Kraft
WayWiser
Stars

The TaxTaker team makes the R&D tax credit process really easy, which is something that's very important given any external-driven process can be more difficult to impact or navigate through. The communication, between timeline, expectations, and results, is excellent. And I truly enjoy the people. Everyone involved is nice to work with - personable while professional and engaging.

Joel Hamann
Joel Hamann
Spot Insurance
Stars

The team at TaxTaker is amazing. At each step from introduction to tax filing, they provided us exactly what we needed and took up very little of our time. All rapidly growing technology companies should contact TaxTaker. You will be very happy you did.

Richard MacWilliams
Richard MacWilliams
COO, TPN Health
Stars

As a Founder and CEO, my bandwidth is limited but cash is king. I appreciate that TaxTaker makes the tax credit process simple and low maintenance. The payroll integration is a great service and the platform is quick and easy. It's great to access the credit and manage cash flow.

Mark Begert
Mark Begert
Founder & CEO, Fabulingua
Stars

The process with the team was super easy, and they were diligent about staying on top of our refund with the IRS, which ultimately returned over $100k to my company. Thank you so much for your help!

Megan Strout
Megan Strout
Founder & CEO, Tack Advisors

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Frequently Asked Questions

Talk to an expert. No hard sell, ever. We only want to work with you if it's a fit.
What changed for the R&D tax credit in 2025 under the One Big Beautiful Bill?

Starting in tax year 2025, businesses can now immediately deduct domestic R&D expenses in the year they occur instead of spreading deductions over five years. The bill also offers refund opportunities for small businesses and faster deduction schedules for larger companies.

How does the new law benefit small businesses and startups?

If your business has $31 million or less in annual gross receipts, you may be able to:

File amended returns for 2022–2024 to get cash refunds for previously capitalized R&D costs

Deduct remaining unamortized R&D expenses faster starting in 2025

Apply your R&D credit against payroll taxes—up to $500,000 per year for qualifying startups

Can I recover R&D costs from previous years?

Yes. Eligible small businesses can retroactively deduct R&D costs from 2022–2024 and claim refunds. Even larger companies can accelerate the deduction of past R&D costs over one or two years starting in 2025.

Do the changes apply to foreign R&D activities?

No. The 15-year amortization rule for foreign R&D remains in place. The new immediate expensing option only applies to U.S.-based research and development.

How much can my company save with the updated R&D tax rules?

Savings vary, but many businesses may recover hundreds of thousands of dollars through a combination of:

Full expensing of domestic R&D costs

Retroactive refunds for 2022–2024

Annual R&D tax credits (often worth 5–10% of qualifying expenses)

How can my startup benefit if we’re not yet profitable?

Startups with less than $5 million in annual revenue can use the R&D credit to offset payroll taxes—up to $500,000 per year—resulting in quarterly cash refunds, even without taxable income.

When should I review my R&D tax credit strategy?

Work with our expert team at TaxTaker. We help innovative companies like yours identify, document, and claim the maximum R&D tax credit available—while ensuring you stay fully compliant with IRS requirements. Our team specializes in both federal and state R&D tax credits, and we know how to uncover hidden value by reviewing past filings for potential refund opportunities. With the new 2025 rules in place, we’ll build a tailored strategy that maximizes your savings now and in the years ahead. That’s why businesses across the country trust TaxTaker to deliver results they can count on.

Who should I work with to maximize my R&D tax credit savings?

Working with TaxTaker is risk free. TaxTaker collects a success fee only if you qualify for a tax credit.

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