Question 1

What is the R&D tax credit?

Accepted Answer

The federal research and development tax credit, found at Section 41 of the Internal Revenue Code, is a dollar-for-dollar reduction in tax liability for businesses that invest in technical experimentation in the United States. Most states operate their own parallel program, and a company can often claim both for the same underlying work.

Question 2

Does my company need a laboratory to qualify?

Accepted Answer

No. Qualification turns on a four-part test, not on job titles or facilities. Software teams, manufacturers, engineering firms, food and beverage producers, agricultural technology businesses and many others qualify because they are resolving technical uncertainty through a documented process of experimentation.

Question 3

What are the four parts of the qualification test?

Accepted Answer

The activity must have a permitted purpose, meaning it aims to improve function, performance, reliability or quality. It must be technological in nature, relying on hard science. It must seek to eliminate technical uncertainty. And it must involve a process of experimentation, such as modelling, simulation or systematic trial and evaluation.

Question 4

We are pre-revenue and pay no income tax. Is the credit still useful?

Accepted Answer

Often, yes. Qualified small businesses may elect to apply up to five hundred thousand dollars of federal credit each year against payroll taxes. Several states go further and pay cash refunds, and a handful allow unused credits to be sold to other taxpayers.

Question 5

How far back can we claim?

Accepted Answer

Amended returns are generally available for three years from the filing date, so a company that has never claimed can frequently recover credits for several open years at once. Statutes differ by state, and some state programs require an application before the spending occurs.

Question 6

How does CreditArmor use AI in a claim?

Accepted Answer

Automation handles the parts of the work where volume causes errors: parsing ledgers and payroll data, clustering activity into projects, drafting first-pass narratives and flagging inconsistencies. Qualification decisions, methodology and every filed position are made and signed off by specialists.

Question 7

What is the relationship between CreditArmor and Swanson Reed?

Accepted Answer

CreditArmor is the technology-led R&D tax credit platform of Swanson Reed, a specialist R&D tax advisory practice. CreditArmor engagements draw on that established specialist bench for technical review, examination defense and multi-jurisdiction experience.

Question 8

How is an engagement priced?

Accepted Answer

Scoping is free and pricing is agreed before work begins, based on the size and complexity of the engagement. We do not price documentation or defense work as a percentage of an unverified estimate.

Questions we are asked before every engagement

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