Frequently asked questions


July 6, 2021


What is the R&D tax credit?

The R&D tax credit is a dollar-for-dollar offset of federal income tax liability, and in certain circumstances, payroll tax liability, too.

What do I need to qualify?

Your company needs to have activities that qualify as research and development expenditures. We’ll help you determine what that might be.

Why didn’t I know about this?

The R&D tax credit was first introduced by the US in 1981, but wasn’t made permanent until 2015. Traditional firms have accounting teams that handle it, but most start-ups don’t — especially in tech. With limited accounting resources, these credits are almost always left on the table.

Can I do this myself?

The R&D tax credit is under close scrutiny for auditing. You want to make sure it’s done properly — and that’s hard to do without an expert (and the only option until recent years was to hire an expensive r&d tax incentive consultant. Our innovative system however uses forecasting and analysis technology to help offset your payroll taxes, with actual people here to help every step of the way. All for a cost-effective price.

What will your service cost me?

We collect just 20% of your savings, typically much cheaper than a traditional r&d tax incentive consultant. We gain new visibility into other savings, too, providing insights that can help your business for years to come.

What happens if I get audited?

We provide your paperwork properly, but sometimes, audits just happen. If you do get audited, Rebate provides full audit protection. That means we will support the R&D claim throughout the entire process. Our protection is backed tax specialists who are well-versed in this area. No stress, no worries. 

How time consuming is claiming R&D tax credits?

It depends on the type and size of the organization. For some it can take 10 minutes. And for others, maybe a few hours. We like to be thorough to ensure accuracy, and the most time-consuming part can be providing proper documentation. Some r&d credit company providers bypass this part, which adds unnecessary risk.

If I didn’t claim for a previous tax year, could I claim it now?

You sure can. We are always happy to provide amendments to help you claim on previous years. It adds complexity to the process, but is a great way to increase your tax credits and savings.

What information do you need?

We typically just need your previous payroll and trial balance data. If we’re looking at amendments for past years, we’ll need previous year tax returns. If you have any additional questions, please reach out.

Can I claim an R&D Tax Credit at the state level?

Yes, sometimes. We are happy to evaluate your eligibility at a state level, too.

I am pre-revenue. Do I qualify?

Absolutely. The Path Act of 2015 allows for pre-revenue companies to use tax credit against their payroll tax. Tax credits also carry forward. If you don’t use them now, you can use them at a later date.