R&D Tax Credit Discovery

Many companies perform qualifying research activities but never claim the R&D tax credit because the process seems complex or unclear. Leo Consult helps you identify and quantify these hidden opportunities through data analysis.

The Problem

Many companies are performing qualifying research activities but never claim the R&D tax credit because the process seems complex or unclear.

Uncertainty About Eligibility

Companies assume R&D credits only apply to labs and scientists, not realizing their engineering improvements, process optimizations, or software development may qualify.

Documentation Challenges

The documentation required feels overwhelming, and tracking which activities qualify requires time and expertise most teams don't have.

Leaving Money on the Table

As a result, many businesses miss out on significant tax credits that could offset payroll costs and improve cash flow.

The Opportunity

Manufacturing firms, software companies, and engineering teams often qualify for significant tax credits when they improve products, processes, or software

Manufacturing

Process improvements, tooling experiments, quality control innovations, and product design changes often qualify.

Software Development

Custom software development, algorithm improvements, performance optimization, and new feature development typically qualify.

Engineering

Design experimentation, prototype testing, material improvements, and technical uncertainty resolution often qualify.

Does Your Company Qualify?

Your company may qualify for R&D tax credits if you engage in any of these activities:

Develop Custom Software

Building proprietary software, applications, or platforms for internal use or commercial sale

Improve Manufacturing Processes

Experimenting with new tooling, techniques, or methods to reduce defects, improve efficiency, or enhance quality

Design New Products

Creating new products or significantly improving existing ones through engineering and testing

Experiment with Engineering Solutions

Testing multiple approaches to solve technical challenges where the outcome is uncertain

Develop Prototypes

Building and testing prototypes to validate designs or technical concepts

Improve Technical Performance

Working to enhance speed, reliability, efficiency, or functionality of products or processes

Overcome Technical Uncertainty

Solving problems where the solution wasn't known in advance and required experimentation

Conduct Scientific Testing

Running systematic tests to evaluate materials, designs, or processes

If you checked even one box, your company may qualify for R&D tax credits.

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What Leo Consult Does

We use data analysis to identify qualifying activities and estimate potential credit value

Identify Qualifying Activities

We analyze your project history, work logs, and operational data to identify activities that meet IRS criteria for R&D tax credits.

  • Review project documentation
  • Interview technical teams
  • Map activities to IRS requirements
  • Identify qualifying projects

Analyze Payroll & Project Data

We examine payroll records, project timelines, and labor allocation to quantify time spent on qualifying activities.

  • Payroll data analysis
  • Time tracking review
  • Project cost allocation
  • Supply expense identification

Estimate Potential R&D Credits

We calculate estimated credit value based on qualified research expenses, giving you a clear picture of potential savings.

  • Calculate qualified expenses
  • Estimate credit value
  • Project multi-year opportunity
  • Provide transparent assumptions

Create Documentation to Support Claims

We prepare comprehensive documentation that supports your R&D tax credit claim, organized and ready for your tax professional.

  • Activity summaries
  • Technical documentation
  • Expense substantiation
  • IRS compliance support

Example Scenarios

Illustrative examples of how different businesses might qualify for R&D tax credits

Manufacturing Example

Production Process Improvement

A manufacturer experiments with new tooling to reduce defects in their production line.

Activities That May Qualify:

  • Engineering experimentation occurred with multiple tooling approaches
  • Outcomes were uncertain—they didn't know which approach would work
  • Multiple approaches were tested through systematic trials
  • Technical knowledge was developed and documented

Potential Result:

Estimated R&D credit opportunity identified based on qualified labor costs, supply expenses, and contractor fees related to the experimentation process.

Software Development Example

Custom Application Development

A software company develops a proprietary algorithm to improve recommendation accuracy for their platform.

Activities That May Qualify:

  • Development of new algorithms and technical approaches
  • Performance optimization testing with uncertain outcomes
  • Systematic evaluation of multiple technical solutions
  • Integration challenges requiring novel technical approaches

Potential Result:

Estimated R&D credit opportunity identified based on developer salaries, cloud computing costs for testing, and third-party contractor fees.

Engineering Example

Product Design Innovation

An engineering firm develops a new component design requiring extensive testing and iteration to meet performance specifications.

Activities That May Qualify:

  • Prototype development and iterative testing
  • Material experimentation with uncertain outcomes
  • Technical problem-solving through systematic evaluation
  • Design modifications based on test results

Potential Result:

Estimated R&D credit opportunity identified based on engineering labor, prototype materials, testing equipment costs, and simulation software expenses.

The Leo Consult Difference: Data-Driven Discovery

We're not traditional tax consultants. We're data analysts who specialize in finding hidden opportunities through systematic analysis of your operational data.

Analytical Approach

We use payroll data, project management systems, time tracking, and expense records to systematically identify qualifying activities—not just what teams remember doing.

Quality-First Methodology

We validate data quality before making estimates. You'll know exactly what assumptions drive our calculations and where uncertainty exists.

Clear, Actionable Insights

No consultant jargon. We give you straightforward findings your tax professional can use, with transparent documentation to support your claim.

Work Directly With Me

You work directly with Wilkin Jones, not a junior analyst. I stay involved from discovery through documentation delivery.

How the Process Works

A clear, efficient timeline from discovery to documentation

1

Discovery Call (30-45 minutes)

We discuss your business activities, project types, and data availability. No cost, no commitment.

2

Data Review & Analysis (1-2 weeks)

We analyze payroll, project, and expense data to identify qualifying activities and estimate credit potential.

3

Findings Presentation (1 hour)

We present our findings, estimated credit value, and supporting evidence. You decide whether to proceed.

4

Documentation Delivery (1 week)

We deliver comprehensive documentation organized for your tax professional to file your claim.

Common Questions

Do I need to be a tech company to qualify?

No. Manufacturing, engineering, food production, and many other industries regularly qualify when they improve processes, develop products, or solve technical challenges.

What size company can benefit?

Companies of all sizes can qualify. Even small businesses with a handful of employees engaged in qualifying activities may benefit significantly.

Will this trigger an audit?

Claiming R&D credits doesn't automatically trigger an audit. Proper documentation reduces risk. We help ensure your claim is well-supported.

Can we claim credits for past years?

Yes. You can typically amend returns for up to three previous tax years to claim R&D credits you missed.

What data do you need to analyze?

Typically payroll records, project lists, time tracking data, and expense reports. We work with whatever data you have available.

Do you file the tax credit claim?

No. We provide the analysis and documentation. Your CPA or tax professional files the actual claim as part of your tax return.

Ready to Explore Your R&D Tax Credit Opportunity?

Schedule a free discovery call. We'll review your business activities and give you an honest assessment of your R&D tax credit potential.

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