How the R&D credit applies to software and technology companies
The federal R&D tax credit covers software work that tries to solve a technical problem through design, coding and testing. Developers do this every week: new features, new architectures, performance fixes and integrations. Much of it is never called research, and it often looks like an ordinary sprint.
Florida software companies claim the credit on their federal returns. Many are S corporations or LLCs, so the credit passes through to the owners, and your CPA files it with the return.
Work that often qualifies
Building new features or products where the design is not obvious
Improving performance, security or reliability with new approaches
Developing automation, machine learning or data pipelines
Building integrations between systems that do not connect out of the box
Prototyping and testing alternatives, including approaches that were dropped
Work that usually does not
Routine maintenance and bug fixes with a known solution
Configuring off-the-shelf tools without custom development
Cosmetic design and content changes
A note on internal-use software
Software built mainly for your own use, such as internal tools, faces an extra test and needs stronger documentation. We look at this early so there are no surprises.
Costs that count
Wages for developers, testers and technical leads on qualifying projects count, along with some cloud and testing costs and a share of what you pay outside contractors. We tie each cost to a specific project so your CPA has a file that holds up if the IRS asks.
What to have ready
A list of products and major features built in the last few years
Who worked on them and roughly how much time they spent
Ticket, commit or sprint records that show the work
Contractor invoices tied to those projects
You do not need all of this to start. The free screening takes 5 to 10 minutes and tells you whether a full study is worth it.
We also work with software and technology companies outside Florida. The federal credit works the same in every state, and we run the screening remotely or in person.
Find out what your work has earned
Free 5 to 10 minute screening. See which of your projects can earn a credit.
Why us
Why businesses choose Strategic Incentive
We are a Sarasota firm that pairs R&D credit specialists with a practicing CPA, so every study is built for the return it feeds.
A CPA partner behind every study
A practicing CPA is part of our team, so the work is built for the return it feeds.
Project-level documentation
Each qualifying project is documented on its own, not covered by boilerplate.
An audit-ready file
Your CPA gets the calculations, narratives and records in one organized package.
How it works
How a study works
Four steps from the first screening to a filed, audit-ready claim.
1
Free screening
A 5 to 10 minute screening based on the IRS four-part test. We review your answers and estimate whether a credit is likely.
2
Discovery interview
A guided conversation and a questionnaire built for your business document each qualifying project.
3
Calculation
We calculate the credit and prepare Form 6765 support, project narratives and employee time allocations.
4
CPA hand-off
We work with your CPA or tax preparer and hand over an audit-ready package. If the IRS asks questions, we respond.
FAQ
Common questions
Straight answers before you start a screening.