Early Growth / What We Do / Taxes

R&D Tax Credits

Qualifying pre-revenue startups and profitable companies alike can save up to $250,000 a year and reduce their cash burn rate with an R&D tax credit study. Our startup tax experts saved our clients over $15 Million in 2019.

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Reduce Your Cash Burn By Up To $250,000 A Year

If you spend time on research & development, recent changes to the tax law could give you a big break on your payroll taxes—
up to $250K a year.
r&d tax credit
Offset Payroll Costs
Starting in the 2016 tax year the R&D tax credit can be used to offset payroll tax for qualifying startup companies. Previously the credit was only allowed to offset income tax, and most startups don’t pay income tax.

In order to qualify, you must have some U.S. based employees or have plans to hire domestic employees during the next tax year, and you must have annual revenue of less than $5M.
r&d tax credit
Offset Income Taxes
Profitable companies may qualify for this provision under the R&D tax credit.

This is a very lucrative option for larger companies with no cap, and you can claim this credit over a 3 year lookback period.
What Industries Qualify?
Long story short, any company in any industry can qualify. However, we've seen great success in:

- Tech
- Biotech
- Robotics
- Aerospace

How Much Can Your Company Save?

Qualifying companies will save roughly 6.20% of their annual domestic payroll costs. A startup can take advantage of the incentive for a maximum of 5 years.

Here are the most important costs to consider when calculating your R&D payroll tax credit:

1. Domestic wages of those involved in the research.

2. Supplies used in the research.

3. Domestic contractor costs involved in the research.

Use our free R&D tax credit calculator below to get a free estimate.
  • Your R&D Expenses

  • Those directly involved, supporting or supervising in the research.
  • Prototypes, lab supplies, and other resources expended in the research. Generally can not include machinery and equipment.
  • Similar to the wage-related activities just they are not conducted by in-house personnel.
  • Your Annual Revenue

  • This field is for validation purposes and should be left unchanged.
Early Growth's R&D tax credit service is outstanding. With a low touch and quick process, they identified how to save us well into six figures on our payroll expenses.

As a small and growing company, this is a huge deal, and we plan to utilize this service every year for as long as we can.
—Liam Berryman, CEO of Nelumbo
Millions Saved By Our Tax Experts
Our CFOs saved our clients over $15 million in 2019 from the R&D tax credit.

Every year, many companies miss the opportunity to maximize their profits by not filing for the R&D tax credit. Our expert team of CFOs has helped gain hundreds of thousands of dollars for business owners to put back into their company.
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Early Growth is the largest national firm in the venture capital space
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