Tax
R&D Tax Credit
Quick definition
Federal credit for qualified research expenses, usable against payroll tax by startups.
Qualifying startups can claim up to $500,000/year of R&D tax credits against payroll tax (post-IRA). Qualifying spend includes US engineering wages, contractor research (65% of cost), and cloud compute used in development. Filed on Form 6765 with your return.
Related tax terms
Delaware Franchise Tax
Annual tax for Delaware corporations, often quoted wildly too high if calculated incorrectly.
Nexus (Sales Tax)
The connection with a state that triggers a tax-collection obligation.
QSBS (Qualified Small Business Stock)
Tax exemption for gains on qualifying startup stock held 5+ years.
Section 83(b) Election
Tax election for restricted stock holders to be taxed on grant-date value instead of vesting value.
See this in action
Insights and tools where R&D Tax Credit shows up.
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The One Big Beautiful Bill Act: Tax Benefits for Businesses and Individuals
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R&D Tax Credit Estimator
Frequently asked questions
- What is R&D Tax Credit?
- Qualifying startups can claim up to $500,000/year of R&D tax credits against payroll tax (post-IRA). Qualifying spend includes US engineering wages, contractor research (65% of cost), and cloud compute used in development. Filed on Form 6765 with your return.
- Why is R&D Tax Credit important for startups?
- R&D Tax Credit is a tax concept that matters for startup founders because it directly affects fundraising readiness, financial decision-making, or operational discipline at the stage where mistakes are expensive to undo. Founders who understand it have a meaningfully easier time in diligence, board meetings, and investor conversations.
- What category does R&D Tax Credit belong to?
- R&D Tax Credit is a Tax term in the StartupCFO finance glossary — alongside other tax concepts that founders, CFOs, and accountants use in daily startup operations and reporting.
- Where can I learn more about R&D Tax Credit?
- Beyond this definition, see the related tax terms below, or explore StartupCFO's insights and tools that put R&D Tax Credit in context. For specific situations, talk to a fractional CFO who can walk through your numbers.
Service spotlight
Want to claim R&D credits?
Our CPAs run §41 studies, document qualified research expenses, and file Form 6765 — including the §41(h) payroll-tax election for pre-revenue startups.
