R&D Tax Credit Preparation Services

Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.

If you have any questions or need further assistance, please call or email our CEO, Damian Smyth on (800) 986-4725.
Feel free to book a quick teleconference with one of our national R&D tax credit specialists at a time that is convenient for you.

R&D Tax Credit Audit Advisory Services

creditARMOR is a sophisticated R&D tax credit insurance and AI-driven risk management platform. It mitigates audit exposure by covering defense expenses, including CPA, tax attorney, and specialist consultant fees—delivering robust, compliant support for R&D credit claims. Click here for more information about R&D tax credit management and implementation.

Our Fees

Swanson Reed offers R&D tax credit preparation and audit services at our hourly rates of between $195 – $395 per hour. We are also able offer fixed fees and success fees in special circumstances. Learn more at https://www.swansonreed.com/about-us/research-tax-credit-consulting/our-fees/

The Bureau of Economic Analysis (BEA) has recently released a report examining R&D spending across the nation. The report, which evaluated spend during the 2017 – 2021 tax years, indicated that R&D activity accounted for 2.3% of the U.S. economy in 2021.

In 2021, the country reported R&D spend of $542.7 billion – a massive increase compared to the $378.2 billion spent in 2017. This shows a continuous growth in R&D investments, despite the hard times faced since the onset of the COVID-19 pandemic.

Each state was evaluated and compared, using R&D as a share of each state’s gross domestic product (GDP). On the lower end of the spectrum, Louisiana and Wyoming sat around a 0.3% spend while New Mexico topped the list at 6.3%.

The top 10 R&D producing states account for 70% of the entire country’s spend. California alone accounts for almost a third of U.S. R&D. Other top R&D-producing states include Washington, Massachusetts, Texas, and New York.

The report further analyzed R&D by sector and determined 85% of R&D value added is generated by the business sector, followed by government, and nonprofit institutions serving households. Ofcourse, “Business Sector” is quite a broad category and so the report broke it down further.

Those in the business sector who run professional, scientific, and technical services account for 40% of the sector’s 85%. This was followed by Information services at 15% and chemical manufacturing at 12%.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

The United States is in talks with other countries to carve out an allowance for the U.S. research and development tax credit as part of the 15% global minimum tax deal.

More than 140 countries have signed up to the Global Minimum Tax deal. The tax treaty imposes a minimum rate of 15% on the profits of multinationals. The Global Cooperation Barometer launched at Davos calls for more collaboration.

“We are negotiating with other countries right now to try to get favorable treatment for the R&D tax credit and I am hopeful these negotiations will be successful,” said Treasury Secretary Janet Yellen during a hearing before lawmakers in the House of Representatives.

The negotiations are ongoing and decisions are not final. Yellen plans to keep the members of the House Ways and Means Committee apprised of any news. The Treasury Secretary continues to defend the global minimum tax, stating that the “Pillar 2” agreement for a 15% global minimum tax is “very much in support of goals that are good for this country.” 

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Many large U.S. companies are pushing lawmakers to revive the expired tax breaks for research and development spending.

The 2017 Tax Cuts and Jobs Act (TCJA) had a provision for Section 174 of the internal revenue code (IRC) which came into effect in 2022 and resulted in research and development expenditures now needing to be amortized over 5 years rather than deducted in the year they occurred. The Tax Relief for American Families and Workers Act of 2024, a bipartisan bill, proposing a change back to deducting methods sprang into action and gained momentum in recent months but has now stalled in the Senate. 

At present, various large companies are stating that the law as it stands is costing them hundreds of millions or billions of dollars, while some owners of small and medium-size businesses are wondering if their firms will survive.

Companies of all sizes have been urging lawmakers to reverse the law. The House passed a bipartisan bill in January to restore immediate domestic research deductions retroactively from 2022, but Republicans have held up the bill in the Senate over details of child-credit changes, their inability to amend the bill and the prospect of a better deal if the GOP wins a Senate majority in November’s election. 

With matters like the House’s impeachment of Homeland Security Secretary Alejandro Mayorkas and reauthorization of a section of the Foreign Intelligence Surveillance Act potentially on the agenda, the Senate isn’t likely to take up the tax bill before a break later this month. “I don’t think there’s been any movement,” said Sen. Todd Young (R-Ind.), who supports the bill.

To add to the frustration caused by this delay, the current bill runs only through 2025 and is, if passed, only a stopgap anyways.

At this point, with hope of the bill passing waning, it is no surprise to see that companies are now considering offshore R&D activities where they could take advantage of other country’s R&D tax incentives. This would bring the benefits of innovation to other countries rather than keeping it local and supporting the United States.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

Small- and Medium-sized businesses who have been committed to innovation can soon breathe a sigh of relief, as the new Tax Relief for American Families and Workers Act clears the House.

The bill cleared the House on January 31, 2024 with a strong bipartisan vote of 357 to 70. This vote saw 169 Republicans and 188 Democrats voting for the new measure. The bill has a collection of tax implications but, for our purposes, the most important provision is the language allowing businesses to deduct their research and development expenditures in the year they incurred those costs. This provision will be retroactive for expenses going back to 2022.

The Tax Cuts and Jobs Act (TCJA) of 2017 had seen this treatment changed, requiring R&D expenditures to be amortized over a 5 year period. This requirement had come into actualization for the 2022 tax year and immediately began wreaking havoc on small- and medium-sized businesses. 

In fact, recent data from the SBE Council suggested that these small- and medium-sized businesses were already beginning to lay off employees to compensate for the additional tax costs. They expected that any failure to restore deduction of domestic R&D expenses could result in an additional tax increase of 32% (or $59,000 on average) for small businesses. They also found that 19% of small businesses speculated they may need to close their firm as a result of the amortization requirements.

While lawmakers did not repeal the five-year amortization outright, the provision will block it for two years. This will, hopefully, provide the time needed for lawmakers to build a solution that will support domestic innovation and small business.

The bill still needs to pass through the Senate. Currently, Majority Leader Chuck Schumer (D-N.Y.) has voiced support for the tax bill and Finance Committee Chair Ron Wyden (D-Ore.)–who co-authored the proposal with and House Ways and Means Committee Chairman Jason Smith (R-Mo.)–will push for action.

But Senate Finance’s top Republican, Mike Crapo (Idaho), said in a statement that after the House’s action the Senate will go through its own process.

“I look forward to working with my colleagues to vet the legislation, address concerns and make the necessary changes to build support,” Crapo added.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.

The Tax Relief for American Families and Workers Act of 2024 is bringing new hope to the nation’s innovators. Announced by House Ways and Means Committee Chairman Jason Smith (MO-08) and Senate Finance Committee Chairman Ron Wyden (D-OR), the common sense, bipartisan, bicameral tax framework promotes the financial security of working families, boosts growth and American competitiveness, and strengthens communities and Main Street businesses. 

Wyden stated that his “goal remains to get this passed in time for families and businesses to benefit in this upcoming tax filing season, and I’m going to pull out all the stops to get that done.”

Many businesses were drastically affected when the Tax Cuts and Jobs Act (TCJA) came into effect, requiring research and experimental (R&E) costs to be amortized rather than expensed. This legislation required domestic expenditure to be amortized over 5 years and foreign expenditure to be amortized over 15 years.

U.S. Senator Maggie Hassan (D–NH) originally introduced the bipartisan legislation to restore the R&D deduction. Now, in an announcement made on January 16, Hassan has released a statement on the bipartisan tax deal.

“The bipartisan deal we have reached to restore the R&D tax deduction and provide a tailored expansion of the child tax credit will help drive innovation here in America and help children and families thrive. I have been strongly pushing to incentivize American R&D since first introducing bipartisan legislation in 2020 to restore the R&D deduction, and with the clear growing bipartisan support in both the Senate and the House, I will keep working with my colleagues and the business community to get this deal done.”

A technical summary of the entire bill can be found here, and goes into detail for efforts into American Innovation and Growth as well as Tax Relief for Working Families and Increasing Global Competitiveness, amongst others.

A summary of the bill covering American Innovation and Growth follows.

Currently, R&E expenses paid or incurred in tax years beginning after December 31, 2021, are required to be deducted over a five-year period. The new provision will delay the date when taxpayers must begin deducting their domestic R&E costs until taxable years beginning after December 31, 2025. Therefore, taxpayers may deduct currently domestic research or experimental costs that are paid or incurred in tax years beginning after December 31, 2021, and before January 1, 2026. 

With the House scheduled to be in recess during the week of January 22, the earliest the House could hold a floor vote would be the week of January 29. The legislation may be a candidate for the “suspension” calendar, requiring a two-thirds majority vote for passage. The House currently is composed of 220 Republicans and 213 Democrats (with two vacant seats that had been held by Republicans). A two-thirds majority vote would require the bipartisan support of at least 286 House members.

If passed, this could bring relief to spring filers, removing amortization requirements for 2023 timely-filed Spring filers.

Are you developing new technology for an existing application? Did you know your development work could be eligible for the R&D Tax Credit and you can receive up to 14% back on your expenses? Even if your development isn’t successful your work may still qualify for R&D credits (i.e. you don’t need to have a patent to qualify). To find out more, please contact a Swanson Reed R&D Specialist today or check out our free online eligibility test.

Who We Are:

Swanson Reed is one of the U.S.’ largest Specialist R&D tax advisory firms. We manage all facets of the R&D tax credit program, from claim preparation and audit compliance to claim disputes.

Swanson Reed regularly hosts free webinars and provides free IRS CE and CPE credits for CPAs. For more information please visit us at www.swansonreed.com/webinars or contact your usual Swanson Reed representative.