R&D Tax Credit

R&D Tax Credit Advisors for Ohio Industry

Ohio companies across manufacturing, engineering, food production, automation, and software development regularly perform technical work that may qualify for the federal R&D Tax Credit. Many of these activities occur during routine operations yet are overlooked because they are not formally labeled as research. The credit supports businesses attempting to improve performance, reliability, functionality, or quality through technical experimentation. RCG helps Ohio organizations identify qualifying activity and develop audit-ready documentation aligned with IRS expectations.

The Research & Development

(R&D) Tax Credit.

Recent federal rules have eased and helped clarify ways in which companies can qualify for research and development (R&D) tax credits. The R&D tax credit is under-utilized simply because so many manufacturing companies don’t realize that the work they are doing to improve their product or the process by which they make their product qualifies for the R&D tax credit.


The initial intent of the R&D tax credits when first introduced was to encourage U.S. businesses to invest in the development of new and improved products in order to help them keep up with foreign competition. The R&D tax credit can help businesses offset their research and development expenses by 20% or more, depending upon the state in which they operate. Additionally, it may be possible to apply for credits for the past three open tax years and even closed tax years in specific situations.

What Is an R&D Tax Credit?

R&D Credits are special tax incentives that reward businesses for improvements fostered by Research and Development. The key word to associate with R&D credits is innovation. If you are designing new or improved products, or devising more efficient and cost effective production methods, why not claim tax savings you have already earned?

Your company is probably spending time and money making your business more productive and its products and services more competitive. If so, you need to investigate this special credit, since R&D tax benefits may exceed those available through your normal tax return.

Who Qualifies for an R&D Tax Credit?

This may be a surprise: You don’t have to be a million dollar research firm or think tank to qualify for the R&D Tax Credit. Many business owners mistakenly assume that R&D tax credits only apply to high tech research in specialized medical or scientific fields. Not so. If you are improving your products, investing engineering or design improvements, or making an existing manufacturing process better through investment, innovation (or good old American ingenuity.)


If a company is engaged in any of the activities below, looking into a potential R&D credit may be a beneficial exercise. Companies engaged in the following activities should the R&D tax credit further:

Pre-production feasibility analysis

Pre-production test runs

Testing new product concepts

Testing new manufacturing concepts

Developing new technology

Trying new or different raw materials

Manufacturing products

Developing or improving production and/or manufacturing processes

Raw material yield maximization analysis

Preparation of technical details of Requests for Proposal quotes

Developing new, improved, or more reliable products / processes / formulas

Prototype Development

Designing tools, jigs, molds, and dies

Certification testing

Interaction between sales personnel and engineering

Maintenance on manufacturing and production equipment

Adding new equipment

Modifying used or existing equipment

Environmental testing

Developing, implementing or upgrading systems and/or software

Developing production control software

Automating internal processes

Beta testing

Improving processes or the manufacturability of a product

Technical design reviews

Participating in technical meetings

Maintaining research equipment

Compiling research data

Creating more efficient and environmentally friendly designs

CAD or 3D Modeling

Does It Apply to Me?

Do you innovate to improve your company or its products? Since innovation is the lifeblood of truly successful businesses, odds are you are already making investments in time and money that qualify for credits. Why not claim them?


To qualify for the R&D Tax Credit, the kind of business you own is less important than how you run it. Whether you sell, manufacture, engineer, design, or recycle, a preliminary review can answer your questions in greater detail. There is no cost for an initial consultation, so call us today to schedule a meeting.

Common Misconceptions About the R&D Tax Credit

We don’t have a research lab: Most qualifying work occurs in everyday engineering, production, testing, or software environments.

We only made small improvements: Incremental improvements may qualify when experimentation is required to resolve technical uncertainty.

Our project failed: The IRS evaluates the technical process, not whether the final result was successful.

This only applies to high-tech companies: Manufacturers, food processors, material handlers, automation groups, and software teams frequently perform eligible work.

“We follow standard industry practices: If your team is determining how to achieve an improved outcome, the work may still be eligible.

Our Serving Area

RCG assists clients in identifying and documenting available adoption assistance tax credits throughout the state of Ohio.

Frequently Asked Questions

  • Do Ohio companies need a formal research facility to qualify?

    No. Eligible work often occurs in standard production, engineering, and software environments.

  • Does improving an existing product or process count as R&D?

     It may when the work involves technical uncertainty and requires structured testing or experimentation.

  • Can internal-use software qualify for the R&D Tax Credit?

    Yes. Software development may qualify when technical challenges must be resolved using computer science principles.

  • Are small and mid-sized Ohio businesses eligible?

    Yes. Eligibility depends on the technical methods used, not the size of the business.

  • What documentation helps support an R&D claim?

    Engineering notes, prototype data, testing results, design revisions, software logs, and payroll information tied to technical work.

  • Can Ohio startups benefit from the credit?

    Eligible startups may apply the credit toward the employer portion of payroll taxes.

Audit-Ready R&D Tax Credit Support

Ohio’s industrial and technology landscape includes manufacturers, software developers, material processors, engineering groups, and automation teams that frequently perform R&D as part of routine operations. RCG supports businesses across Columbus, Cleveland, Cincinnati, Dayton, Akron, Toledo, and nearby regions. Each engagement includes technical interviews, project-level analysis, documentation of uncertainty and experimentation, and preparation of a complete audit-ready package for your CPA.

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