R&D Tax Credit

Cabrillo can assist with your Research & Development Tax Credit which applies to businesses across many industries including technology, hardware, biotech, ecommerce, and many more. Your company may be able to claim a sizable tax credit of up to $250,000. Once it has been approved by the IRS, the R&D credit is applied towards the business’s future payroll tax liabilities.

We conduct the R&D tax study in order to identify the amount of qualifying R&D expenses the company can claim on its federal tax return. The necessary tax paperwork is prepared and filed with the IRS and the appropriate documentation is provided to you for your tax preparer to file.

Qualified Startup Research Expenses for the Tax Credit:

  • Wages – paid to employees for qualified services. This includes amounts considered to be wages for federal income tax withholding purposes.
  • Supplies – used and consumed in the R&D process. Supplies are defined as any tangible property other than land or improvements to land, and property subject to depreciation.
  • Contract Research – expenses paid to a third party for performing QRAs on behalf of the taxpayer. Regardless of the success of the research, 65% of the actual cost incurred.
  • Lease or rental costs of computers – those that are used in qualified activities such as payments to cloud service providers for renting server space to develop.