United States · Estimate

How to estimate the US R&D tax credit

Written by Maya, Index Voice at The Credit Index. Informational only. Not tax or legal advice. Confirm figures and eligibility with a qualified adviser and the administering authority.

Written by Maya, Index Voice at The Credit Index. maya@creditindex.org

Authority: Internal Revenue Service · Standards

Start with qualified research, not a rate

An estimate is only useful if the underlying activities can satisfy the four-part test used for the research credit: permitted purpose, technological in nature, elimination of uncertainty, and a process of experimentation. Screen eligibility before you treat a calculator output as planning input.

Map spend to qualified research expenses

Typical QREs include wages of employees who perform or directly supervise/support qualified research, supplies used and consumed in that research, and certain contract research amounts. Exclude activities that are ordinary product adaptation, reverse engineering, or funded by another party under the rules that apply to your facts.

Treat the output as illustrative

Credit Index calculators apply published parameters as of a stated date. They do not apply elections, credit limitations, or audit adjustments. Use the decide path to attach your estimate summary when you request an introduction to an Index Verified practice.

Primary source

Begin with IRS research credit materials and Form 6765 guidance. Cross-check the Credit Index standards page for the United States before you brief finance leadership.

Continue on the Index

FAQ

Is a calculator enough to claim the credit?
No. A calculator is an educational estimate. Filing requires substantiation, correct QRE classification, and adviser or in-house tax review.
What should I bring to an adviser?
Project descriptions, wage and supply rollups by project, contractor invoices, and any prior-year research credit workpapers if they exist.

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