Tax Playbook · Business owners
The R&D tax credit
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If your small business builds new products or software, the R&D tax credit can wipe out your employer payroll tax — up to $500,000 a year. A startup spending $1.5 million on research might earn roughly a $150,000 credit to offset payroll tax. You must be a young, small business (under $5 million in receipts) and file on time. This is complicated, so get a tax pro involved.
Good for: Founders and small business owners who build things.
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Recent articles & guides
- Strike Tax — OBBBA and the R&D tax credit
- Strike Tax — R&D payroll tax credit for startups
- Windes — new rules for domestic R&D expenses under OBBBA
- GeekExtreme — is software development tax deductible? (2026)
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Educational summary, not tax advice. Limits and rules change — confirm current law with your tax adviser.