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.
See this in action
Insights, guides, and tools where R&D Tax Credit shows up.
- insight
The Delaware C-Corp Startup Tax Guide: Every Filing You Owe
- insight
5 Accounting Mistakes That Tank Seed Rounds (and How to Fix Them Before Diligence)
- insight
2026 Startup Tax Deadlines: The Complete Calendar for Venture-Backed Companies
- insight
Tax Planning Strategies Under the One Big Beautiful Bill Act
- tool
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 shows up in fundraising readiness, financial decision-making, and operational discipline at the stage where mistakes are expensive to undo. Founders who understand it are better prepared for 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 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.
