R&D Study - RIVERSIDE, CA

Your Riverside Startup Is Probably Leaving $500,000 on the Table Every Year.

If your startup pays engineers, contractors, or cloud computing costs to build software or technology, you almost certainly qualify for federal and California R&D tax credits. Most Riverside founders never claim them because no one told them to look. We do the study. You get the credit.

    Up to $500,000 in refundable R&D credits annually
    Federal and California state R&D study included
    AI-enabled software keeps costs lower than competitors
    Audit-ready documentation - IRS-proof reports
    Qualifying expenses include payroll, contractors, compute, and supplies
    Coordinated with your federal income tax filing

    No commitment. Free first call. We tell you if you qualify before you pay anything.

    $100M+

    in R&D credits claimed for clients

    R&D Study

    0.75%

    of Qualified Research Expenses

    You claim the credit. We take a small percentage of what qualifies.

    Everything Included

    ✓ Federal R&D tax credit study

    ✓ California state R&D credit study

    ✓ Identification of all qualifying expenses

    ✓ Audit-ready documentation package

    ✓ AI-enabled expense tracking software

    ✓ Coordination with your income tax filing

    ✓ IRS support if your credit is questioned

    We tell you if you qualify before you commit to anything.

    The Basic

    The R&D Tax Credit Is One of the Most Valuable - and Most Overlooked - Tax Benefits for Startups.

    The federal R&D tax credit was created to reward companies that invest in innovation. If your startup is building software, developing technology, or conducting research to improve a product or process, the IRS considers that qualified research activity.

    For startups that have not yet turned profitable, the credit is refundable - meaning the IRS pays it back to you directly, even if you owe no taxes. That is real cash back into your company, not just a deduction.

    California has its own R&D credit on top of the federal one. Our study captures both at the same time, with no additional charge for the state credit.

    Federal R&D Credit - Up to $500,00/year

    Pre-revenue and early-stage startups can claim up to $500,000 in refundable federal R&D credits annually. The credit offsets your payroll tax liability - meaning you get cash back even with no taxable income.

    California R&D Credit - 15% of Qualifying Expenses

    California offers a 15% credit on qualified research expenses above a base amount. Unlike the federal credit, it is not refundable - but it can carry forward for years and offset future California tax liability.

    You Must File on Time to Claim It

    The refundable R&D credit is only available to startups that file their federal income tax return on time. A late filing means you lose the credit for that year - no exceptions. This is why we coordinate the R&D study directly with your income tax filing.

    AI-Enabled Study - Lower Cost Than Competitors

    Our R&D study process uses AI-enabled software to identify and document qualifying expenses faster and more accurately than manual methods. That is how we keep the cost at 0.75% while larger firms charge 2-3x more.

    Do you Qualify?

    Most Riverside Tech Startups Qualify.
    Here Is What the IRS Looks For.

    You do not need to be a research lab. If your startup is building something new and paying people to do it, you likely qualify. The IRS uses a four-part test.

    Technological in Nature

    The activity must rely on hard sciences; engineering, computer science, biological science, or physical science. Building software, developing algorithms, or engineering a physical product all qualify. Writing marketing copy does not.

    Permitted Purpose

    The research must aim to improve the functionality, performance, reliability, or quality of a product or process. If you are building something better, faster, or cheaper using technical knowledge, you are likely covered

    Elimination of Uncertainty

    Your team must be trying to resolve technical uncertainty, meaning you did not know at the start whether or how you could achieve the result. Most software and product development inherently involves this.

    Process of Experimentation

    The work must involve a process of testing, evaluating alternatives, or iterating toward a solution. Agile development, sprint cycles, A/B testing, and prototype iteration all count as experimentation under IRS guidelines.

    Riverside Industries That Commonly Qualify

    Cleantech, healthtech, AI, agtech, IoT, SaaS, biotech, robotics, and hardware development. If your startup is in any of these sectors and has engineers or technical contractors on payroll, start a conversation with us.

    Pre-Revenue Startups Qualify Too

    You do not need revenue to claim the R&D credit. In fact, pre-revenue startups often benefit most because the federal credit is fully refundable; you get cash back directly, even with no taxable income to offset.

    Not sure if you qualify? The first call is free - and we will tell you straight.

    We do not take on studies we do not believe will produce a meaningful credit. If you do not qualify, we tell you in the first conversation at no charge.

    What COunts

    Qualifying Expenses - What the IRS Lets you Claim

    These are the four categories of expenses that count toward your Qualified Research Expenses (QREs).
    The more of these your startup has, the larger your potential credit.

    Direct Employee Wages

    Engineers and developers working on qualifying projects
    → Data scientists and ML engineers
    → Product managers directly involved in technical development
    → QA engineers and technical testers
    → Portion of founder salary spent on qualifying activities

    Computer Rental and Cloud Costs

    → AWS, Google Cloud, or Azure costs for R&D workloads
    → GPU compute for AI and ML model training
    → Cloud storage directly used in research activities
    → Testing environments and development servers
    → SaaS tools used exclusively for qualifying research

    Contract Research Expenses

    → Freelance engineers and developers on 1099
    → Technical consultants engaged in R&D activities
    → Research firms or university partnerships
    → 65% of contractor payments can be claimed (IRS rule)
    → Must be U.S.-based to qualify for the federal credit

    Research-Related Supplies

    → Lab materials and testing supplies
    → Prototype components and hardware parts
    → Materials consumed or destroyed during testing
    → Specialized equipment used only for research
    → Does not include capital equipment or depreciable assets

    HOW IT WORKS

    From First Call to Filed Return. Here Is What to Expect

    1
    Free Qualification Call
    We start with a no-commitment call to understand your startup's activities, headcount, and expense structure. We will tell you upfront whether we believe you qualify and give you a rough estimate of your potential credit. No charge for this conversation.
    2
    Expense Identification and Documentation
    We work with you to identify every qualifying expense across payroll, contractors, compute costs, and supplies. Our AI-enabled software categorizes and documents each expense to IRS standards - building an audit-ready record from the ground up.
    3
    Technical Interview and Activity Mapping
    We conduct structured interviews with your technical team to document the qualifying research activities. This is the part most firms skip - and it is the part the IRS scrutinizes most in an audit. We do it thoroughly, every time.
    4
    Study Report and Credit Calculation
    We produce a complete R&D study report - federal and California - with the full credit calculation, supporting documentation, and the technical narrative required for IRS compliance. You review it before anything is filed.
    5
    Coordination With Your Tax Filing
    The R&D credit is claimed on your federal income tax return. We coordinate the study directly with your tax filing to make sure the credit is properly calculated and filed on time. Missing the filing deadline means losing the credit - we make sure that never happens.

    CALIFORNIA-SPECIFIC

    TRANSPARENT PRICING

    You Only Pay When We Find a Credit Worth Claiming.

    Our fee is 0.75% of your Qualified Research Expenses - not your credit amount. That means our incentive is to find every dollar of qualifying activity, not just enough to justify our fee.

    For comparison, most large accounting firms charge 2% to 3% of QREs for the same study. Our AI-enabled process lets us do it at a fraction of the cost - without cutting corners on documentation quality.

    If we do not find a meaningful credit opportunity, we tell you in the first call and walk away. No study fee, no obligation.

    0.75%

    of Qualified Research Expenses

    Example: $1M in QREs = $7,500 study fee for a potential $65,000–$100,000+ credit

    Federal R&D credity study Included
    California state credit study Included
    Audit-ready documentation Included
    Technical interview support Included
    Coordination with tax filing Included
    IRS audit support Included

    Common Questions

    R&D Study Questions From Riverside Founders

    We are a software startup. Do we really qualify for R&D credits?

    Almost certainly yes. The IRS considers software development to be qualified research activity when it involves technical uncertainty and a process of experimentation. If your engineers are solving technical problems - architecture decisions, algorithm development, performance optimization - that counts. The bar is lower than most founders think.

    We have not turned a profit yet. Can we still claim the credit?

    Yes - and this is where the credit is most powerful for startups. Pre-revenue companies can claim the federal R&D credit as a refundable payroll tax offset of up to $500,000 per year. That means the IRS sends you cash back against your employer payroll taxes - even with zero taxable income. You do not need to be profitable to benefit.

    What is the difference between the federal and California R&D credits?

    The federal credit is worth up to $500,000 annually and is refundable for qualifying startups - meaning you get cash back even with no tax liability. The California credit is 15% of qualifying expenses above a base amount and is not refundable, but it carries forward indefinitely and offsets future California tax liability. Our study captures both at the same time.

    How long does the R&D study take?

    Typically 3 to 6 weeks from the time we have access to your payroll records, contractor agreements, and technical team for interviews. We time the study to coordinate with your income tax filing deadline so both are filed together. Starting early - ideally in Q1 - gives us the most time to do it thoroughly.

    What happens if the IRS audits our R&D credit?

    Our study is built to be audit-ready from day one. Every qualifying expense is documented with the technical narrative, employee time allocations, and supporting records the IRS requires. If the IRS questions your credit, we support the defense as part of the engagement. We do not produce studies we cannot stand behind.

    Can we claim R&D credits for prior years we already filed?

    Yes. You can amend prior year returns to claim R&D credits you missed - typically going back up to 3 years. If your startup has been operating for a few years without claiming the credit, we can conduct a lookback study to recover those credits. This is one of the most common situations we handle for Riverside founders switching from a legacy local CPA.

    Find Out What You've Been Missing

    Most Riverside Startups Qualify.
    Find Out in One Free Call.

    We will review your startup's activities and tell you straight whether you qualify and what your credit could look like. No commitment, no study fee until we find something worth claiming.

    Free qualification call. No obligation. We serve Riverside startups from pre-revenue through Series C.