R&D Credit Payroll Tax Offset May Offer More Immediate Cash Tax Benefit

If you’re a qualified small business that devotes resources to making products, processes, or software better, faster, cheaper, or more sustainable, you may benefit from R&D tax credits even if you have no income tax liability. Startup taxpayers, in certain circumstances, may offset up to $500,000 of their FICA federal payroll tax liability — for up to 5 years — using R&D credits. The 2022 Inflation Reduction Act doubled this, bringing the previous limit of $250,000 to the current $500,000. Companies across a variety of industries can benefit from the credit.

Businesses founded in the past five years and with less than $5 million in revenue may be eligible. Qualifying research activities don’t need to be flashy or revolutionary, or even succeed.

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Request a Complimentary R&D Credit Review
Complete the form to request your complimentary review with our R&D tax credit professionals to see if you qualify and learn how to claim the credit.

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Calculate Your Savings
Use BDO’s R&D Tax Credit Calculator to estimate your potential benefit.

Request a Complimentary R&D Tax Credit Review

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Dedicated R&D Tax Leaders

Our team includes R&D tax professionals across the country who provide a tailored, hands-on approach that is specific to your industry and the needs of your business.

Knowledgeable Advisors

Our professionals understand the intricacies of federal and state tax requirements and use their years of experience to help clients support more qualified costs on exam.

Streamlined Approach

We help clients implement technology, tools, and processes to streamline credit claims, saving them time and helping ensure proper documentation is collected to support any potential examinations.

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