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Reasearch and Development Tax Credits

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R & D Tax Credits

This is a valuable incentive that encourages innovation and investment in research and development activities by reducing federal income tax liabilities for eligible businesses. 

It plays a vital role in fostering technological advancement and economic growth in the United States
Why haven't I heard about R&D Tax Credits?
You’re not alone, even though the credit has been around since 1981, it was typically reserved only for large corporations.

It wasn’t until 2016 that the credit benefits were expanded, and reporting requirements burden reduced, opening the door for millions of additional companies that didn’t have access before.
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Find Out if you are Eligible for R&D Credits

This will take you to the ERC Fastrack site
Just Selcet R&D from the Drop Down Menu


Benefits of the R&D Tax Credit
  • The R&D credit is now available for businesses of all sizes, including startups.
  • A Hidden and Immediate Source of Cash for Many Companies.
  • Increase the Market Value, Earnings Power And Cash Flow of the Business.
  • Create a Significant Reduction to Current and Future Years Tax Liabilities.
  • Lower your Company’s Effective Tax Rate.

Four part Test for Eligibility

  • How will I receive my Qualified Sick & Family Paid Leave wage credit?
    The IRS will refund you for your 2020 and/ or 2021 tax credit via a check. Please note that if you have any outstanding tax liabilities, the refund will first be used to offset the tax balance.
  • Is this similar to the PPP program?
    The PPP (Paycheck Protection Program), under the CARES Act, aids in retaining employees on payroll, offering loans potentially forgivable for small businesses. Qualified Sick & Family Leave wage credits, stemming from the FFCRA, Consolidated Appropriations Act, and the American Rescue Plan, provide tax credits for individuals without requiring repayment. While PPP targets business support, Qualified Sick & Family Paid Leave wage credits aim to assist individuals affected by the economic impact of missing work due to the COVID-19 pandemic
  • What is the Qualified Sick & Family Leave tax credit program?
    The Families First Coronavirus Response Act (extended by the Consolidated Appropriations Act), and the American Rescue Plan offer tax credits to individuals through paid sick leave and extended family and medical leave for COVID-19-related reasons.
  • Is the Qualified Sick & Family Paid Leave wage credit a loan or a grant?
    The Qualified Sick & Family Paid Leave wage credit functions as a tax credit, not a loan or grant. Tailored to address needs similar to those covered by mandatory paid leave for employees, these tax credits aim to provide compensation for income lost due to COVID-19-related circumstances. Whether you were sick, caring for someone affected by COVID-19, or facing conditions hindering your ability to work, these credits aim to alleviate the financial impact on your income.
  • Who is eligible for the Qualified Sick & Family Paid Leave wage credits?
    To be eligible for Self Employed Qualified Sick & Family Paid Leave wage credits, you need to fulfill specific requirements. This includes being a self-employed individual, encompassing various categories such as sole proprietors, independent business owners, 1099 contractors, freelancers, gig workers, and single-member LLCs. Additionally, you must have filed a Schedule SE or Schedule C of IRS Tax form 1040 in either 2020 and/or 2021, showing a positive net income and the payment of self-employment tax on your earnings. Furthermore, qualification entails having missed work due to issues directly related to COVID-19
  • What dates are eligible for Qualified Sick & Family Paid Leave wage credits?
    Covid related paid time off is available as follows: up to 60 days – 12 weeks between April 1, 2020, and March 31, 2021.Up to 70 days - 14 weeks between April 1, 2021, and September 30, 2021.
  • Why does this government do this?
    The government wants to keep innovation here in the United States by incentivizing companies to develop projects by reducing the financial risk on projects where cost might prevent them from pursuing them.
  • How does it benefit me?
    This dollar-for-dollar credit can be claimed up to three years back, bringing in cash for those years, immediately helping any cash needs, and can be carried forward 20 years, reducing future taxes and therefore increasing your profitability and valuation. There is no limit on income tax credits, and we can go up to 1.25 million in payroll taxes for startups.
  • Why haven’t I heard about this?
    You’re not alone, even though the credit has been around since 1981, it was typically reserved only for large corporations. It wasn’t until 2016 that the credit benefits were expanded, and reporting requirements burden reduced, opening the door for millions of additional companies that didn’t have access before.
  • Can my CPA do this?
    Yes, they can, but most CPAs don’t have the resources or expertise needed to locate and capture the full value of your credits, which is why so many partners with specialists like us must handle that part of your return.
  • How do I know if I qualify?
    Click "Begin Qualifying" and our experts will prescreen your business to help determine if you qualify before you spend any time going through our process.
  • When do I claim the payroll tax offset?
    The payroll tax offset is available on a quarterly basis beginning in the first calendar quarter that begins after a taxpayer file their federal income tax return.
  • If I claim the credit, can I still expense it?
    Yes, you get to double dip! Meaning you can expense the items like you normally would while also claiming the credit to get additional benefits.
  • Can companies more than 5 years old get the payroll benefit?
    Yes. Although the law is intended to benefit small businesses, any company formed prior to 2012 that did not receive gross receipts could also potentially benefit.
  • How is a credit different from a deduction?
    Regarding tax deduction vs. tax credit, the essential difference between deduction and credit is that credit directly decreases the amount of tax you owe while a deduction lowers your overall amount of taxable income. A nonrefundable credit lets you reduce your tax liability to 0.
  • What is the R&D payroll tax credit requirements?
    The R&D payroll tax credit requirements vary by country and jurisdiction. It typically involves qualifying research and development activities and meeting specific criteria for eligible expenses and documentation.
  • What is the startup provision?
    The startup provision allows companies to claim credits against payroll taxes if they’re not paying income tax. This is great for pre-revenue firms that are spending a lot on product development but haven’t gone to market yet. We can decrease your burn rate by getting your money back. You can claim up to 250k a year, and up to 1.25 million in total.
  • Is the payroll benefit only for startups or small businesses?
    No. It just needs to have: Gross receipts are less than $5 million in the taxable credit year. No gross receipts for any taxable year preceding the 5-taxable year period ending with the taxable credit year. R&D payroll tax credit can be used in that year. So even companies that have been around for more than five years and have spent billions of dollars to develop or improve any component could be eligible.
  • What expenses qualify?
    There are three buckets of expenses that qualify: supply costs, contractor costs, and wages. Each of these costs must be assigned to a qualifying project for the expenses to be claimed.
  • Is it worth the time?
    Absolutely! Considering the positive impact on your cash flows or bottom line and that your assessment can typically be completed in 90 minutes or less.
  • Isn’t the R&D credit just for tech or scientific companies?
    No. It’s for all types of companies, many that don’t even realize are eligible.
  • Do you offer integration for my payment gateway?
    We sure do. If you are accepting online payments, you do all the work for you! Meaning you have the ability to get the merchant services setup as well as your gateway. We will handle all that for you in your streamlined application process, and product assessment.
  • Does my business qualify for your merchant services?
    Yes! Our primary goal is to meet your payment processing requirements, while ensuring you have met any and all regulatory standards. We have the ability to work with most existing business types.
  • What type of payments will I be able to accept?
    Depending on your business needs and type, we offer all payment processing types. eCommerce Payments, All Major card brands via, payment equipment, mobile payments, ACH, eCheck, POS/at-the-table payments. If the payment type was not listed, we can confirm your payment need in our free consultation, and Merchant Audit.
  • Are your Services Secure?
    Simply put, YES! If you are accepting a card/online payment, there are certain requirements to do so. Our Data Security team works seamless with our operations team to ensure that your account is PCI Compliant. You also will be EMV Compliant, this ensures you will be able to accept EMV chip cards via credit or debit card payments.
  • Do you offer customer service?
    YES! We offer world class customer service 24/7. You will have access to your personal customer service representative to tackle any problem that may arise.
  • How quickly can I start accepting payments?
    Depending on your industry type, we can have you up and running within 12 hours of submitting your completed application along with the required supporting documents.
  • How much does payment processing cost?
    We offer payment processing with any and every potential industry. Within certain industries we are able to offer a flat rate, and other industries will have a different monthly fee structure set. This is why we complete a FREE Merchant Audit, to gain a precise picture of what your processing needs will be.
  • Is The CHAMP Plan™ compliant?
    Yes. The CHAMP Plan™ is a qualified Section 125 plan set up as a self-funded employer-sponsored plan that is 100% funded by employees through a pre-tax payroll deduction. The amount deducted represents the maximum claims for the policy year. The third-party administrator (TPA) holds the monies in a custodial account and pays claims as they incur in accordance to the plan document and the schedule of benefits. The definition of a claim is defined as claims made to providers, facilities, pharmacies, or employees. Claims to employees result when an applicable CPT code is triggered with a corresponding explanation of benefits (EOB). Examples of these claims include preventive examinations, bio-metric screens, health risk assessments, and chronic medication fulfillment. Claims made to employees are neither taxable nor considered ordinary income. The amount of premium charged to employees is actuarially set to cover the claim risk on the plan while meeting a desired medical loss ratio (MLR). At the end of the plan year and the runout period, any potential surplus left in the claim account is considered a plan asset to the employer.
  • What prescriptions are covered?
    A robust list of nearly 200 generic and brand name prescriptions is covered by The CHAMP Plan™, including many of the nation’s top-prescribed drugs such as simvastatin and atorvastatin for high cholesterol, amlodipine and lisinopril for high blood pressure, levothyroxine for hypothyroidism, and bupropion for tobacco cessation, as well as antibiotics like azithromycin and amoxicillin, pain management medications like gabapentin and meloxicam, and mental health medications like lorazepam and clonazepam (see formulary list for full details). Prescriptions not on the list may also be covered at a significant discount.
  • Can we begin participating in the program at any time?
    Yes, and every month you wait, you’re losing out on potential FICA savings per employee!
  • How do I implement this plan to my employees?
    It’s simple! Once you send us a copy of the census, we can begin to identify your potential savings per employee.
  • Do employees need to change providers or medical care?
    No. Employees who voluntarily enroll in The CHAMP Plan™ can continue to use the same providers and receive the same medical care they’re already receiving through their traditional medical insurance. The CHAMP Plan™ can provide additional options for better quality care and cost savings as identified by the physician of record, but employees are not required to take those options.
  • Do I have to change insurance?
    No. The CHAMP Plan™ is a self-funded overlay program that supplements existing traditional medical insurance plans.
  • Does The CHAMP Plan™ meet the definition of Minimal Essential Coverage (MEC)?
    The CHAMP Plan™ meets the definition of an MEC for the individual mandate, but is not sufficient from an employer’s perspective.
  • Why did my employee’s paycheck go up?
    Each pay period, a pre-tax deduction comes out of each employee’s paycheck to help fund the employer-sponsored CHAMP Plan™. The typical taxes are then taken from the now reduced pre-tax pay, and employees receive a post-tax benefit after participating in a monthly healthcare activity that triggers a CPT code and explanation of benefits. (Triggers are as simple as watching a video or reading an article). In short, a lower adjusted gross income results in lower taxes, which raises an employee’s take-home pay after The CHAMP Plan™ post-tax benefit is added to their paycheck!
  • What benefits are included?
    Unlimited access to Concierge’s advocate approach to health care. It’s having a doctor available 24/7 at your beck and call. Resolve workplace misconduct easier and smarter with Champion Work Shield. Champion Work Shield is an unbiased third party that works to efficiently manage reporting, investigation and resolution of workplace harassment, discrimination and misconduct issues in their entirety.


Business Component 
Development or improvement of a business component for sale or use by a customer

  • Product

  • Process

  • Software

  • Technique

  • Formula

  • Invention


Technical Uncertainty

At the onset of the development activity, there must be uncertainty relative to:

  • Capability; or

  • Process; or

  • Appropriate Design


Process of  Experimentation

Evaluation of one or more alternatives used to eliminate technical uncertainties identified at the beginning of the development activity.


Scientific Principles
Principles of physical, biological sciences, engineering, physics or computer science must be inherent in the Process of Experimentation

Two ways to calculate the Credit


Lesser of (QREs – FB) or (QREs x 50% x 20% = Regular R&D Tax Credit

Qualified Research Expenditures (QREs) = Wages + Supplies + (Contract Research x 65%) Fixed Base Amount (FB) = Average Revenue (prior 4 years) x Fixed Base Percentage (FB%)

Regular Research Tax Credit

Alternate Simplified Method (ASC)

QREs – F3YQRE x 14% = Alternate Simplified Credit
Qualified Research Expenditures (QREs) = Wages + Supplies + (Contract Research x 65%) P3YQRE = Prior 3 years QREs

Industries most likely to benefit from the R&D Credit

Click to Download PDF
Type of industries
Click to Download PDF

Why use Origins Group?

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In - Depth Industry
Knowledge :

Our team of licensed CPAs has extensive experience in navigating the complex world of R&D tax credits. With a deep understanding of the regulations, requirements, and industry-specific nuances, we ensure your R&D tax credit claims are accurate, compliant, and optimized for maximum benefits.


Customized Strategies for Your Unique Needs :
We recognize that every business has its unique R&D activities. Our team takes the time to understand your business and tailor an R&D tax credit strategy that aligns with you. Our personalized approach ensures you receive the maximum credit for your qualifying research activities.


Comprehensive Documentation & Support :
Our expert CPAs will help you maintain accurate and detailed documentation of your R&D activities, ensuring that your claims are substantiated and audit-proof. We'll guide you through every step of the process, providing ongoing
support and advice to make your R&D tax credit journey seamless and stress-free.


Savings & Long-Term Growth:

By partnering with our experienced R&D tax credit firm, you can trust that we will uncover every opportunity to maximize your tax savings. These additional funds can be reinvested into your business, fostering innovation, growth, and long-term success.

Find Out if you are Eligible for R&D Credits

This will take you to the ERC Fastrack site
Just Selcet R&D from the Drop Down Menu


Calculation info


You complete an initial eligibility / discovery questionnaire click
See If you Qualify for R&D Credits

Find Out if you are Eligible for R&D Credits

This will take you to the ERC Fastrack site
Just Select R&D from the Drop Down Menu



The CPA firm will work with you to clarify your eligibilty

Cost structure and the full process will be confirmed on the initial free discovery call

We arrange a call for you with a qualified CPA firm specializing in R&D Credits

Next steps / What Now ?

Click on the "See If You Qualify" button below or reach out to RPC Advisors for any initial process discussion - Calendar Links are below


Our Process . . .

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Contact me
Richard Charge
for a free Discovery Call.

In person appointments available in NYC

Online + Voice Calls available nationwide.

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