Startup R&D Tax Credit

About The Service

The Research & Development (R&D) Tax Credit was signed into law by Congress as part of the Economic Recovery Tax Act of 1981. The purpose of the credit is to encourage American industries to invest in creativity and innovation, and to stimulate economic growth through tax incentives. The PATH Act of 2015 made the R&D Tax Credit permanent, as well as opened it up to Startups and Small Businesses.

Who Qualifies

While the traditional definition of R&D may include white labcoats, the tax definition expands much further. Anytime a business makes changes or improvements to a product, design, or development process, the related activities could be earning the business tax credits. In order to claim the R&D credit, Startups must have:

  • Current tax year gross sales less than $5M
  • No gross sales 5 years prior to current year (For 2018, no sales prior to 2014)

Maximize Your Federal R&D Credit

The Research & Development Tax Credit can make a significant impact on your federal tax liability. Use our calculator to find out how HIREtech can maximize your R&D Tax Credit through our Project-by-Project methodology.

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This state has no credit.
Approximate Credit Range $26-$39 Year One
Approximate One-Year Credit $33 2016 Credit
Approximate Five-Year Credit $198 2016-2020 Credit



  • $1 for $1 reduction of payroll (FICA) taxes 
  • Carryforward indefinitely
  • Up to $250,000 in savings each year
  • FREE Audit Defense is included with all technical services – We stand by our work.
  • CPA Support – We work directly with your CPA/tax preparer to help you claim these credits.

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