R&D Tax Credit Ebook

How to Claim the R&D Tax Credit — A Business Owners Guide to Saving $100k+

Discover how your company can claim up to $500,000 annually in federal payroll tax credits — even without income tax liability

Is your company missing out on one of the most valuable tax incentives in the U.S. tax code?

If you’re developing new products, improving processes, writing code, building software, or solving technical problems — you might qualify for the Research & Development (R&D) Tax Credit. Yet most eligible businesses either don’t know about it, or assume they don’t qualify.

That’s why we created this free, comprehensive R&D Tax Credit guide — to help you understand how the R&D tax credit works, who qualifies, and how to start claiming it confidently and compliantly.

Whether you’re a tech startup, a growing manufacturing company, or a professional services firm that’s solving technical challenges, this tax credit could be putting tens — or even hundreds — of thousands of dollars back into your business each year.

Get Your Free R&D Tax Credit eBook

This downloadable PDF guide gives you a step-by-step breakdown of:

What Is the R&D Tax Credit?

The R&D tax credit is a federal incentive that provides a dollar-for-dollar reduction of your business’s tax liability for performing qualified research activities (QRAs).

Unlike deductions, which only reduce your taxable income, tax credits reduce the taxes you owe — directly. Even better, for qualified small businesses (QSBs), the credit can now be used to offset payroll taxes, not just income taxes.

This means:

Common Industries That Qualify

Think your business isn’t “R&D” enough? Think again. The credit is widely applicable. In fact, the IRS reports that companies across these industries regularly qualify:

If your company creates, improves, or tests products, software, or internal processes — there’s a good chance you qualify.

Why It Matters Real Money Back for Innovation

The R&D tax credit isn’t just for big corporations with labs and patents. It’s for companies of all sizes that are trying to improve their products, services, or internal operations through a technical process.

Every year, businesses leave billions of dollars on the table because they assume they don’t qualify. The truth is: if you’re innovating, you’re likely eligible.

This credit typically returns 6–10% of qualified research expenses (QREs), including:

What Counts as “R&D” for the IRS?

The IRS uses a four-part test to determine whether your activities are eligible:

Permitted Purpose

The project aims to create or improve a product, process, software, or system.

Technological in Nature

The work is based on principles of science, engineering, or computer science.

Elimination of Uncertainty

The company faces uncertainty about capability, methodology, or design.

Process of Experimentation

The company tests, evaluates, or models different approaches to solve a problem.

Many companies already pass this test without realizing it.

How Much Can You Save?

Depending on your R&D spend and calculation method, you could be saving thousands — or hundreds of thousands — every year.

The credit is calculated using one of two methods:

Our free guide breaks down both methods and shows you how to determine which is right for your business.

Why Startups and Small Businesses Shouldn’t Wait

Thanks to the Inflation Reduction Act, startups can now offset up to $500,000 in payroll taxes using the R&D credit.

You qualify as a QSB if:

This provision allows even pre-profit companies to free up cash — right now — to reinvest in growth.

And the best part? If you missed claiming the credit in prior years, you can file amended returns and potentially unlock $100,000+ in refunds.

What You’ll Need to Claim the Credit

To successfully claim the R&D tax credit, you must keep detailed documentation that supports:

Our eBook includes a checklist of documentation you’ll need, including:

This documentation doesn’t need to be complex — it just needs to be complete and tied directly to your qualifying activities

Common Mistakes That Can Cost You Thousands

Many businesses lose out on the R&D tax credit due to:

Our guide explains how to avoid these costly errors and ensure you’re fully compliant — while still maximizing your claim.

Why Work with R&D Tax Specialists?

While you can attempt to claim the credit yourself, working with a specialist can help you:

Most businesses that work with experienced professionals claim significantly higher credits and avoid common pitfalls.

What’s Inside the Free R&D Tax Credit guide?

Whether you’ve never claimed the credit before or want to improve your existing process, this guide will give you everything you need to get started.

About the Author

Dallas L Alford IV, CPA

Founder, K-38 Consulting

Dallas L. Alford IV, CPA, is the founder of K-38 Consulting, a boutique financial advisory and tax strategy firm that helps growth-minded businesses unlock hidden value through smarter financial planning and tax optimization.

With decades of experience in accounting, corporate finance, and federal tax incentives, Dallas has helped businesses across industries recover thousands — and in many cases, hundreds of thousands — of dollars through the R&D tax credit.

Whether you’re a startup looking to free up payroll tax cash flow, or an established company that’s never claimed the credit before, our team brings a CFO-level strategic approach to every engagement.

We’ve helped businesses across the U.S. uncover meaningful tax savings they didn’t realize they were entitled to — all through a streamlined, consultative process that makes claiming the R&D credit easier, faster, and more accurate.

Don’t leave money on the table.

The R&D Tax Credit is one of the most powerful tools available to help businesses fuel growth, fund innovation, and improve cash flow — but only if you know how to claim it.

Download the free guide today and start saving thousands in taxes.

Don’t Miss This Opportunity

Fewer than 20% of eligible businesses claim the R&D tax credit — which means you’re likely missing out on a major financial advantage.

Download the free guide now to learn how to:

faq

Everything You Need to Know

Do I need a formal R&D department to qualify?

No. The credit is based on activities, not job titles. Even if you don’t have a department labeled “research,” your team may be doing qualified work.

What if my business isn't profitable yet?

That’s fine. Startups can apply the credit against payroll taxes, getting up to $500,000 per year in real savings.

Can I go back and claim past years?

Yes. You can typically amend returns for the last 3 open tax years and recover missed credits.

What documentation do I need?

Time tracking, payroll data, technical design notes, and anything that proves the nature of the work. Our guide explains exactly what to collect.

How long does it take to file?

If you have your documentation ready, you can claim the credit as part of your annual income tax filing or through quarterly payroll tax filings (for QSBs).

Don’t Miss This Opportunity

Fewer than 20% of eligible businesses claim the R&D tax credit — which means you’re likely missing out on a major financial advantage.

Download the free guide now to learn how to:

Not Sure If You Qualify? Let’s Find Out — For Free.

You don’t have to guess whether your business qualifies for the R&D tax credit. At K-38 Consulting, we offer a free, no-obligation analysis to help you determine:

We’ll review your business model, projects, and financials to give you a clear answer — fast.

This is a risk-free opportunity to uncover potential tax savings your business may already be entitled to.

Schedule Your Free R&D Tax Credit Analysis

Unlock potential tax savings with a free R&D credit evaluation. We’ll assess your projects, calculate your qualifying expenses, and show you how much you could recover.