---
title: Is the Often-Overlooked Research and Development (R&D) Tax Credit Worth the Hassle?
description: What are the benefits of the R&D tax incentive, and how do you know if you can claim the credit? Here are the details you need to know.
image: https://blog.mgallp.com/hubfs/research%20and%20development%20tax%20credit.jpg
---
[](http://www.mgallp.com)
- [Client Portal](https://app.mgallp.com/)
- [Pay Your Invoice](https://mgallp.com/pay-your-invoice/)
- [What We Do](https://mgallp.com/your-problem-to-solve/)
- [Who We Help](https://mgallp.com/why-we-are-right-for-you/)
- [Insights](https://blog.mgallp.com)
- [Our Team](https://mgallp.com/our-team/)
- [Careers](https://mgallp.com/join-us/)
- [Let’s Connect](https://mgallp.com/contact-us/)
-
-
-
# **Is the Often-Overlooked Research and Development (R&D) Tax Credit Worth the Hassle?**
[](http://www.facebook.com/share.php?u=https%3A%2F%2Fblog.mgallp.com%2Fis-the-often-overlooked-research-and-development-rd-tax-credit-worth-the-hassle%3Futm_medium%3Dsocial%26utm_source%3Dfacebook) [](http://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fblog.mgallp.com%2Fis-the-often-overlooked-research-and-development-rd-tax-credit-worth-the-hassle%3Futm_medium%3Dsocial%26utm_source%3Dlinkedin) [](https://twitter.com/intent/tweet?original_referer=https%3A%2F%2Fblog.mgallp.com%2Fis-the-often-overlooked-research-and-development-rd-tax-credit-worth-the-hassle%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&url=https%3A%2F%2Fblog.mgallp.com%2Fis-the-often-overlooked-research-and-development-rd-tax-credit-worth-the-hassle%3Futm_medium%3Dsocial%26utm_source%3Dtwitter&source=tweetbutton&text=Is%20the%20Often-Overlooked%20Research%20and%20Development%20%28R%26D%29%20Tax%20Credit%20Worth%20the%20Hassle%3F) [](mailto:?subject=Check%20out%20https%3A%2F%2Fblog.mgallp.com%2Fis-the-often-overlooked-research-and-development-rd-tax-credit-worth-the-hassle%3Futm_medium%3Dsocial%26utm_source%3Demail%20&body=Check%20out%20https%3A%2F%2Fblog.mgallp.com%2Fis-the-often-overlooked-research-and-development-rd-tax-credit-worth-the-hassle%3Futm_medium%3Dsocial%26utm_source%3Demail)
2 min read
The Research and Development (R&D) tax credit provides a dollar-for-dollar reduction in a business’s tax liability for certain domestic expenses related to the development or improvement of products, processes, performance, and more.
The goal of this tax credit is to stimulate economic growth by encouraging companies from a variety of industries to invest in innovation.
Smaller companies might overlook this benefit, thinking it’s too complex, not worth the hassle, or more appropriate for those larger companies in the industry. But we encourage you to think again. The R&D tax incentive was created to help bolster companies and give them a competitive edge in the market, and the scope of eligibility is fairly broad.
Is the R&D tax credit worth it? What qualifies as research and development? How can you claim the R&D tax credit? Here are the details you need to know.
### What Are the Benefits of the R&D Tax Incentive?
Since its inception in 1981, the R&D tax incentive has been one of the most significant credits used by U.S. business owners, as there are many noteworthy benefits.
- It provides an immediate source of cash for many small and mid-size businesses, as they benefit from reduced tax liability. The credit is a dollar-for-dollar reduction against federal and state taxes owed or paid.
- It allows up to 6-16 cents of federal and state R&D credits to be received for every qualified dollar spent.
- Excess tax credits can be carried forward up to 20 years.
- A company can perform look-back studies to recognize unclaimed credits for open tax years (generally the last three years plus the current year)
### How Do I Know If I Can Claim the R&D Tax Credit?
Many companies are actually eligible for the R&D tax credit. It applies to not only product development but also companies who engage in data science, focus on quality enhancements, or employ engineers.
Your organization could qualify for the R&D tax credit if it:
- Focuses on creating new or innovative products or improving existing products
- Develops new or improved activities and operations, such as new manufacturing processes, software development, or techniques to be used in your business
- Hires designers, scientists, or engineers or relies on hard science, such as computer science or biological sciences
- Devotes time and resources to the purpose of discovering technological information
### Reach Out to Your Tax Expert (Us!) For Further Information
Sure, the R&D credit relates to new products, services, or processes. But don’t forget that it also applies to improving existing products, services, and processes as well.
We encourage you to talk to your tax team here at MGA to help you maximize your R&D tax credit claims. We can help you understand what documents you need to have on hand, what expenses may be excluded, and much more.
If we can make the complex simple for you, [let’s talk](https://mgallp.com/contact-us/).
---
### Stay Connected
Want to stay up to date with our latest blog posts, educational videos, webinars, and more? [**Subscribe for instant notifications**](https://blog.mgallp.com/subscribe-now-instant-notifications) and get new content delivered straight to your inbox.
Prefer a monthly roundup instead? [**Subscribe to our newsletter**](https://blog.mgallp.com/subscribe-now-monthly-newsletter) for valuable insights and resources from our team of experts, all in one place.
And be sure to [**follow us on social media**](https://blog.mgallp.com/follow-mga-on-social-media) for timely updates, expert insights, and exclusive resources to keep you in the loop.
August 30, 2022
Posted in [Tax Services](https://blog.mgallp.com/tag/tax-services), [Tax Planning Strategies](https://blog.mgallp.com/tag/tax-planning-strategies), [Tax Preparation](https://blog.mgallp.com/tag/tax-preparation)
### Recent Posts:
[](https://blog.mgallp.com/how-tax-extensions-work-and-why-uploading-documents-as-you-receive-them-matters)
[How Tax Extensions Work (and Why Uploading Documents as You Receive Them Matters)](https://blog.mgallp.com/how-tax-extensions-work-and-why-uploading-documents-as-you-receive-them-matters)
[](https://blog.mgallp.com/need-a-2026-federal-tax-reference-guide-weve-got-you-covered)
[Need a 2026 Federal Tax Reference Guide? We've Got You Covered](https://blog.mgallp.com/need-a-2026-federal-tax-reference-guide-weve-got-you-covered)
[](https://blog.mgallp.com/gambling-taxes-in-2026-why-you-can-owe-tax-even-if-you-didnt-win)
[Gambling Taxes in 2026: Why You Can Owe Tax Even If You Didn’t Win](https://blog.mgallp.com/gambling-taxes-in-2026-why-you-can-owe-tax-even-if-you-didnt-win)
[](https://blog.mgallp.com/why-charitable-giving-in-2025-beats-2026-new-tax-rule-you-should-know)
[Why Charitable Giving in 2025 Beats 2026 — New Tax Rule You Should Know](https://blog.mgallp.com/why-charitable-giving-in-2025-beats-2026-new-tax-rule-you-should-know)
### Let's Connect
### [(713) 622-3960](tel:(713)%20622-3960)
600 N. Shepherd Drive, Suite 200
Houston, TX 77007
Miller Grossbard Advisors, LLP is an independent member firm of [PrimeGlobal](https://primeglobal.net/), an association of independent accounting firms. PrimeGlobal is one of the five largest associations of independent accounting firms in the world, providing a wide range of tools and resources to help member firms furnish superior accounting, auditing, and management services to clients around the globe.
Miller Grossbard Advisors, LLP places strong emphasis on maintaining the highest level of professional excellence. The Firm is a member of the Employee Benefit Plan Audit Quality Center. We maintain a rigorous quality control system to verify that our auditing practices follow both professional and Firm standards.
Copyright © Miller Grossbard 2026. All Rights Reserved. – [Privacy Policy](https://mgallp.com/privacy-policy/)
```json
{
"@context" : "https://schema.org",
"@type" : "BlogPosting",
"author" : {
"@type" : "Person",
"name" : "MGA Team",
"url" : "https://blog.mgallp.com/author/mga-team"
},
"dateModified" : "2026-06-17T23:32:30.133Z",
"datePublished" : "2022-08-30T14:00:00.000Z",
"headline" : "Is the Often-Overlooked Research and Development (R&D) Tax Credit Worth the Hassle?",
"image" : [ "https://blog.mgallp.com/hubfs/research%20and%20development%20tax%20credit.jpg" ],
"mainEntityOfPage" : {
"@id" : "https://blog.mgallp.com/is-the-often-overlooked-research-and-development-rd-tax-credit-worth-the-hassle",
"@type" : "WebPage"
},
"publisher" : {
"@type" : "Organization",
"logo" : {
"@type" : "ImageObject",
"url" : "https://blog.mgallp.com/hubfs/MGA%2035%20Logo.png"
},
"name" : "Miller Grossbard Advisors, LLP"
}
}
```