R&D Study - San Diego, CA
Your San Diego Startup Is Probably Leaving $500,000 on the Table Every Year.
If your startup pays scientists, engineers, contractors, or lab and compute costs to develop therapeutics, devices, or technology, you almost certainly qualify for federal and California R&D tax credits. Most San Diego founders never claim them because no one told them to look. Our trusted CPA partner does the study. You get the credit.
Qualifying startups can offset up to $500,000 of payroll tax per year
Federal and California state R&D study included
AI-enabled software keeps costs lower than competitors
Audit-ready documentation - Audit ready 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.
R&D Study
Percentage
of Qualified Research Expenses
You claim the credit. Our trusted CPA partner takes a percentage of your qualifying research expenses.
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
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 haven't yet turned profitable, the credit is refundable, meaning the IRS pays it back to you directly, even if you owe no taxes. That's real cash back into your company, not just a deduction.
California has its own R&D credit on top of the federal one. The study captures both at the same time, with no additional charge for the state credit.
Federal R&D Credit, up to $500,00/year
California R&D Credit, 15% of Qualifying Expenses
You Must File on Time to Claim It
AI-Enabled Study - Lower Cost Than Competitors
Do you Qualify?
Most San Diego 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.
San Diego 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, this is worth a conversation.
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 our trusted CPA partner will tell you straight.
Our trusted CPA partner doesn't take on studies that won't produce a meaningful credit. If you don't qualify, you'll hear that 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
Computer Rental and Cloud Costs
Contract Research Expenses
Research-Related Supplies
HOW IT WORKS
From First Call to Filed Return. Here Is What to Expect
CALIFORNIA-SPECIFIC
TRANSPARENT PRICING
You Only Pay When We Find a Credit Worth Claiming.
The fee is a percentage of your Qualified Research Expenses, not your credit amount. That means the incentive is to find every dollar of qualifying activity, not just enough to justify the fee.
Most large accounting firms charge based on a percentage of QREs for R&D studies too. The AI-enabled process here keeps costs meaningfully lower, without cutting corners on documentation quality.
If there's no meaningful credit opportunity, you'll hear that in the first call. No study fee, no obligation.
Percentage
of Qualified Research Expenses
Want to know what this looks like for your startup?
Common Questions
R&D Study Questions
From San Diego Founders
Is my software startup really able to 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.
My startup hasn't 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 don't need to be profitable to benefit.
What's 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. The R&D study captures both at the same time.
Can I claim R&D credits for prior years I already filed?
Yes and no. You can file a claim for R&D credits from prior years, but there's an important distinction. If the prior year return is within the standard filing window, the credit may still be refundable. For returns more than 3 years old, the R&D credit is no longer refundable, instead, it becomes an offset against your income tax liability rather than a direct cash refund. Your specific situation gets assessed on the first call so you know exactly what you can recover and in what form.
How long does the R&D study take?
The R&D study can be completed within 24 hours once everything needed is available, though the timeline ultimately depends on how quickly you want to move and how responsive your team is. Direct access to your payroll system is not required. A point of contact who can provide the relevant information is all that's needed. The study is coordinated directly with your tax filing deadline so both are completed together.
How long does the R&D study take?
The R&D study can be completed within 24 hours once everything needed is available, though the timeline ultimately depends on how quickly you want to move and how responsive your team is. Direct access to your payroll system is not required. A point of contact who can provide the relevant information is all that's needed. The study is coordinated directly with your tax filing deadline so both are completed together.
Find Out What You've Been Missing
Most San Diego Startups Qualify.
Find Out in One Free Call.
A review of your startup's activities will tell you straight whether you qualify and what your credit could look like. No commitment, no study fee until something worth claiming is found.
Free qualification call. No obligation. We serve San Diego startups from pre-revenue through Series C.