How the Research and Development Tax Credit Works for Small Businesses

In this episode of The Tax Strategy Podcast, Lucas and Luna demystify the Research and Development (R&D) tax credit for small businesses. They explain how the credit works for companies developing new products, improving processes, or creating software, not just for lab coats in white rooms. Using a concrete example of a small manufacturing firm that automated its assembly line, Lucas walks through qualified research expenses, the four-part test, and how to calculate the credit. Luna highlights the payroll tax offset for startups, allowing unprofitable companies to get cash back. They also discuss common pitfalls like the base period calculation and documentation requirements. By the end, you'll understand why the R&D credit is one of the most undervalued tax breaks for Main Street businesses—and how to claim it without triggering an IRS audit. #RDTaxCredit #RAndDCredit #SmallBusiness #TaxStrategy #TaxPlanning #BusinessTax #Finance #FexingoBusiness #BusinessPodcast #IRS #TaxDeductions #Startup #PayrollTax #Manufacturing #SoftwareDevelopment #ProductDevelopment #QualifiedResearch #TaxCredit Keep every episode free: buymeacoffee.com/fexingo