The U.S. R&D Tax Credit is a federal incentive that rewards companies investing in innovation, software development, and technical problem-solving within the United States.
It’s designed for startups and scaleups building proprietary technology by:
Engineering AI models, software platforms, and cloud systems
Experimenting with new architectures, algorithms, or integrations
Funding technical salaries, dev infrastructure, and research activities
Claim up to $250,000 in payroll tax offsets or reduce income tax liabilities for eligible R&D expenses.
Developing proprietary software, experimenting with new features, improving system performance, or overcoming technical uncertainty.
U.S.-based developers, engineers, data scientists, product architects, and technical team members.
Startups, software companies, SaaS platforms, product teams, and R&D-heavy ventures incorporated in the U.S.
The U.S. R&D credit can be used alongside other funding mechanisms, including grants, venture funding, and state-level incentives.
Companies in the U.S. investing in software development, technical experimentation, or product innovation may be eligible for the federal R&D tax credit.
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Yes — many companies combine the federal R&D tax credit with state-level incentives. While the federal program covers qualified research expenses (QREs) like wages, supplies, and cloud computing, state programs often provide additional refunds or credits based on similar criteria. VTG ensures your claims are properly structured to maximize your total benefit and avoid overlap.
No problem. The R&D tax credit is based on the portion of time employees spend on qualified R&D activities. For example, if an engineer spends 50% of their time testing new algorithms or prototyping a product, that portion of wages is eligible. VTG helps quantify and document time allocation to support a compliant and maximized claim.
No minimum. Even startups with just one or two developers can qualify, especially if you’re building proprietary technology. The credit is available to pre-revenue and post-revenue companies, and can often be applied against payroll taxes if you're not yet profitable. VTG can help you determine your eligibility through a quick assessment.
If you're claiming the payroll offset, the benefit typically appears within 1–2 quarters after filing your federal return. For income tax offsets or refunds, timing depends on IRS processing but usually ranges from 3–6 months. VTG tracks your claim through every stage and helps expedite where possible.