R&D Tax Credit Studies

Transform Your Technical Challenges into Strategic Capital

Many companies overlook the R&D tax credit because they believe it is reserved for laboratory-based “white coat” research. In reality, the credit is one of the most powerful cash-flow tools available to middle-market companies, PE-backed portfolios, and high-growth tech firms. If your organization is improving products, automating manufacturing processes, or developing proprietary software, you are likely sitting on significant, unclaimed capital.

We provide the technical rigor to substantiate your innovation. At Calvetti Ferguson, we move beyond simple estimations. Our R&D specialists provide the “institutional-grade” documentation required to withstand IRS scrutiny while navigating the complexities of Section 174 capitalization. We ensure that your innovation is properly quantified, documented, and transformed into a dollar-for-dollar reduction of your tax liability.

A Rigorous Approach to the “Four-Part Test”

To qualify for the Credit for Increasing Research Activities (IRC Section 41), your activities must meet four specific criteria. We provide the technical narratives and financial tracing to prove your eligibility.

Technical Substantiation & Documentation

The IRS has increased documentation requirements, particularly regarding the qualitative narratives of your research.

• • • The Four-Part Test Evaluation: We conduct deep-dive interviews with your technical leads to verify that activities are technological in nature and involve a systematic process of experimentation.

    • Section 174 Compliance: We provide the necessary analysis to navigate the mandatory capitalization and amortization of R&D expenses, ensuring your tax strategy is holistic and compliant.

    • Contemporaneous Documentation: We help you implement systems to capture project data in real-time—including Jira logs, GitHub commits, and project memos—to build an “audit-ready” defense.

Maximizing Qualified Research Expenses (QREs)

We look across your entire enterprise to identify often-missed expenses that can be included in your claim.

• • • Wages: Capturing the qualifying time of not just the primary researchers, but the “direct support” and “direct supervision” tiers as well.

    • Supplies: Identifying the cost of materials used in the creation of prototypes or testing batches that are not capitalized.

    • Contract Research: Navigating the 65% or 75% allowable limits for third-party engineering or software development services.

Industry-Specific Opportunity Areas

We tailor our R&D studies to the specific “uncertainties” found in your industry:

• Manufacturing & MEP: Designing custom tooling, robotics integration, and process optimization to improve throughput or reduce scrap.

• Technology & Software: Developing new architecture, scaling platform capabilities, and experimenting with AI/machine learning integration.

• Life Sciences & HealthTech: Navigating the technicalities of clinical trials, medical device prototyping, and regulatory-driven product refinement.

• Energy & Infrastructure: Engineering new methods for extraction, sustainable materials testing, and complex HVAC/BIM system design.

Why Choose Calvetti Ferguson?

We offer a multidisciplinary approach that combines engineering-level understanding with top-tier tax expertise.

• PE & Portfolio Focus: We understand that, for Private Equity firms, R&D credits are a tool for enhancing EBITDA and preserving valuation.

• Advanced Technology Tools: We utilize specialized digital platforms to streamline data collection, reducing the administrative burden on your technical staff.

• Seamless Multi-Year Review: We don’t just look at the current year; we can review all open tax years (typically the last three) to identify retroactive refund opportunities.

Ready to Unlock Your Hidden Cash Flow?

Don’t leave money on the shop floor or in your codebase. Let’s build the transparent, high-integrity study your innovation deserves—partner with a firm that understands the intersection of technical innovation and enterprise value.

Contact Our Team