R&D Tax Credit

Are you investing in innovation, new product development, or process improvements? If so, you may qualify for the R&D tax credit, a powerful government incentive designed to reward businesses that engage in research and development activities.

At K-38 Consulting, we specialize in helping businesses claim and maximize their R&D tax credits. Whether you’re a startup, small business, or established company, our R&D tax credit consulting services ensure that you receive the maximum tax benefit while staying fully compliant with IRS and state regulations.

What Is the R&D Tax Credit?

The Research and Development (R&D) Tax Credit is a dollar-for-dollar tax credit offered by the federal government and many state governments to encourage businesses to invest in innovation.
This credit applies to businesses in all industries that develop or improve:
  • Products (software, hardware, medical devices, etc.)
  • Processes (manufacturing improvements, automation, etc.)
  • Techniques (new engineering methods, scientific research, etc.)
  • Formulas & Prototypes
Many businesses assume they don’t qualify, but the eligibility requirements are broader than most people think. Even if you don’t have a dedicated R&D department, you may still be eligible for substantial tax savings.
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R&D Tax Credit

Benefits of Claiming the
R&D Tax Credit

Determining whether your business needs a Startup CFO depends on your financial challenges and growth stage. If you’re unsure whether it’s time to bring in financial leadership, ask yourself the following questions:

Reduce Your Tax Liability

The R&D tax credit directly reduces the amount of federal and state taxes your business owes.

Increase Cash Flow

For small businesses and startups, the credit can offset payroll taxes, providing much-needed cash flow.

Competitive Advantage

By reinvesting tax savings into R&D, you can innovate faster and stay ahead of competitors.

Retroactive Claims Available

You can amend previous tax returns (up to 3 years) to claim missed R&D tax credits and recover past expenses.

Works for All Business Sizes

From startups to Fortune 500 companies, the R&D tax credit is available across all industries including:
  • Technology & Software Development
  • Manufacturing & Engineering
  • Life Sciences & Pharmaceuticals
  • Aerospace & Defense
  • Automotive & Robotics
  • Construction & Architecture

How to Qualify for the
R&D Tax Credit

To qualify for the R&D tax credit, your business must conduct activities that meet the IRS’s Four-Part Test:

Permitted Purpose

The research must aim to develop new or improved products, processes, or technologies.

Technological in Nature

The research must be based on engineering, computer science, physics, chemistry, or other technical disciplines.

Eliminate Uncertainty

The project must involve an evaluation of alternatives to resolve technical uncertainty.

Process of Experimentation

You must use systematic trial-and-error testing, modeling, or simulation to reach a solution.

If your company is engaged in innovation, product development, or process improvement, you likely qualify for the R&D tax credit.

Why Partner with K-38 Consulting
For CFO Services?

At K-38 Consulting, we don’t just manage your financials—we act as an extension of your executive team, helping you make the big-picture financial decisions that drive business success.

Book Your Call Today

What Expenses Qualify for the R&D Tax Credit?

  • Employee Wages – Salaries for employees directly involved in R&D activities
  • Contract Research – Payments to third-party contractors conducting research
  • Supplies & Materials – Costs of prototypes, testing materials, and development tools
  • Cloud Computing & Software Costs – Expenses for cloud-based software used in R&D
  • Patent-Related Expenses – Costs associated with applying for patents
Many businesses underestimate the number of expenses that qualify, leaving money on the table. Our R&D tax credit consultants help you identify every eligible expense to maximize your claim.

Federal vs. State R&D Tax Credits

Federal R&D Tax Credit

The federal R&D tax credit is available to all U.S. businesses that engage in qualified research activities. The credit can be used to offset:
  • Income taxes
  • Payroll taxes (for startups with less than $5M in revenue)

State R&D Tax Credits

Many states offer additional R&D tax credits, which can further reduce your tax burden. Some states match a percentage of the federal R&D tax credit, while others have independent state-level programs.

At K-38 Consulting, we help businesses navigate both federal and state R&D tax credits to maximize total savings.

How K-38 Consulting Helps You Maximize
Your R&D Tax Credit

Many businesses struggle to claim the R&D tax credit due to complex regulations, changing tax laws, and fear of IRS audits. Our team of R&D tax credit consultants ensures that your claim is accurate, fully documented, and audit-ready.

Our Proven Process for R&D Tax Credit Claims

Free Eligibility Assessment

We start with a detailed review of your R&D activities to determine if you qualify.

Expense Identification & Documentation

Our team analyzes payroll, contractor, and supply expenses to ensure all eligible R&D costs are included.

Tax Credit Calculation

We use IRS-approved methodologies to calculate your maximum tax savings.

Audit-Ready Reporting

We provide detailed documentation to support your claim, ensuring full IRS compliance.

Claim Submission & Follow-Up

We work with your tax preparer to integrate the R&D tax credit into your tax return and provide ongoing support in case of an audit.
Schedule Call Today

Client Testimonials

We treat our client's business as if it were our own

"K-38 Consulting has been an invaluable partner in our growth, providing exceptional outsourced CFO services that have transformed our financial strategy. Their expertise has helped us increase profitability, optimize cash flow, and enhance our revenue cycle, positioning our practice for long-term success. We highly recommend their services to any business looking for top-tier financial leadership."
outsourced CFO services
Jane HamiltonCEO, Horizon Health Centers
"As a construction business owner juggling many responsibilities, partnering with K-38 Consulting has been a game-changer. Their outsourced CFO services have helped us streamline our finances, improve cash flow, and boost profitability, allowing us to focus on delivering top-quality projects. Thanks to their expertise, our revenue cycle is stronger, and our financial strategy is more efficient than ever. We highly recommend K-38 Consulting to any business looking for expert financial guidance."
fractional CFO services
John MoyerPresident, Moyer Construction
"K-38 Consulting has given our law firm greater financial control and clarity, providing us with accurate, reliable financial reporting each month. Their web-based forecasting tools, combined with their expert outsourced CFO services, have been instrumental in improving cash flow, increasing profitability, and strengthening our revenue cycle. With their guidance, we can make informed financial decisions that support our firm’s growth and long-term success. We highly recommend their services."
cfo services
Robert MosesManaging Partner, Moses and Connor Law
"As a biotech startup, navigating financial strategy and cash flow management is critical to our success. K-38 Consulting has been an invaluable partner, providing expert outsourced CFO services that have helped us optimize our financial operations, improve cash flow, and enhance our business processes. Their strategic insights and forecasting tools have given us the clarity and confidence to make informed decisions, secure funding, and drive sustainable growth. We highly recommend K-38 Consulting to any startup looking for top-tier financial leadership."
startup cfo
Amy JohnsonCEO, Dover Therapeutics
"As a fast-growing SaaS startup, having a strong financial strategy is essential—and K-38 Consulting has been a game-changer for us. Their outsourced CFO services have helped us improve cash flow, optimize our revenue cycle, and scale profitably. With their expert financial guidance and forecasting tools, we’ve been able to make data-driven decisions, attract investors, and position our company for long-term success. We highly recommend K-38 Consulting to any tech startup looking for top-tier financial leadership."
SaaS cfo
Marcus BennettFounder, CloudNova Solutions
"As an eCommerce business, managing cash flow, profitability, and financial strategy is critical to our success. K-38 Consulting has been an invaluable partner, providing expert outsourced CFO services that have helped us streamline our finances, optimize our revenue cycle, and increase profitability. Their strategic insights and forecasting tools have given us the clarity to make smarter financial decisions, scale efficiently, and sustain long-term growth. We highly recommend K-38 Consulting to any eCommerce company looking for top-tier financial expertise."
ecommerce cfo
Arlo SmithCEO, Urban Valut

Who Can Benefit from R&D Tax
Credit Consulting?

Our R&D tax credit services are ideal for:

  • Small businesses & startups looking to reduce tax liability and improve cash flow
  • Mid-sized businesses investing in product or process development
  • Manufacturers, software companies, and engineering firms with R&D expenses
  • Companies that missed out on claiming past R&D credits and need retroactive filings
Schedule Call Today

Why Choose K-38 Consulting?

At K-38 Consulting, we take the guesswork out of claiming the R&D tax credit. With years of experience in tax consulting, we ensure businesses receive the maximum tax benefit while staying fully compliant.

Why Clients Trust Us:

Expertise in R&D Tax Credits

We stay updated on the latest tax laws and regulations to ensure maximum savings.

Personalized Service

Every client gets a customized R&D tax credit strategy based on their industry and expenses.

Audit Protection

Our team provides fully documented claims that stand up to IRS scrutiny.

Proven Results

We’ve helped businesses save millions in tax credits.

Technology Partners

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