Cleveland R&D Tax Advisors
R&D Tax Credit
R&D Tax Credit Services for Cleveland Businesses
Cleveland has a long-standing presence in engineering, manufacturing, medical technology, product development, and software innovation. Across the region, companies refine products, improve processes, enhance software, and solve complex technical challenges. Much of this work qualifies for the federal Research and Development (R&D) Tax Credit—even without a formal R&D department.
Since 2004, RCG has completed more than 25,000 R&D tax credit studies and identified over $750 million in federal and state tax savings. Our team of CPAs, engineers, architects, tax specialists, and technical writers works exclusively on R&D Tax Credits and Cost Segregation Studies. Cleveland companies rely on RCG to document qualifying activities clearly and accurately.
Many companies assume the R&D Tax Credit is meant only for large corporations. In reality, small and mid-sized Cleveland organizations perform qualifying technical work every year. RCG helps identify these activities and prepares audit-ready documentation for a compliant filing.
What the R&D Tax Credit Is
The R&D Tax Credit is a federal incentive that supports engineering development, experimentation, software advancement, and process improvement. Cleveland companies do not need a research lab to qualify. Qualifying activity often occurs during design evaluations, prototype development, testing, software refinement, and production improvements.
Ohio also offers a state-level incentive depending on the company’s situation.
How the R&D Tax Credit Strengthens Your Business
Reduced tax liability: Qualified research expenses generate federal—and when applicable, state—tax savings.
Improved cash flow: Businesses often claim credits for open tax years (typically the last three), creating direct financial benefit when eligible.
Support for innovation and technical progress: Testing, prototyping, engineering evaluation, and software upgrades often meet IRS requirements.
Potential payroll tax offset for eligible startups: Certain early-stage companies may apply a portion of the federal credit toward payroll taxes.
Recognition for technical contributions: Work that enhances products, software, systems, or production methods aligns with the credit’s purpose.
RCG evaluates Cleveland technical activities and prepares compliant documentation for filing.
What the R&D Tax Credit Can Do for Your Cleveland Business
Cleveland companies regularly perform engineering design, testing, prototype refinement, software development, and production improvement. When teams test ideas, analyze alternatives, refine features, or solve engineering challenges, those activities often satisfy IRS standards.
Many companies do not recognize how closely their daily work meets R&D criteria. RCG interprets these activities and prepares audit-ready documentation for accurate filing. Companies may also claim credits for open tax years, improving overall financial performance.
Sectors That Qualify for R&D Tax Incentives
The R&D Tax Credit supports a wide range of Cleveland organizations engaged in technical development or improvement, including:
Manufacturing
Engineering and product development
Medical and scientific technology
Software and IT
Industrial technology
Tooling and fabrication
Consumer product innovation
Specialized production
Eligibility depends on the technical nature of the work, not company size or category.
Who Qualifies for the R&D Tax Credit
Cleveland companies qualify when they perform activities such as:
Prototype development
Feasibility or early-stage testing
Material, performance, or reliability testing
Improving production efficiency
Enhancing durability or functionality
Certification or compliance testing
Equipment modification
Software refinement or upgrades
Implementing automation or control systems
Reviewing engineering or testing data
Using CAD or 3D modeling tools
RCG evaluates how these activities align with federal R&D guidelines.
Steps to Claim Your R&D Tax Credit
1. Identify qualifying activities
RCG reviews your engineering, testing, development, and software activities.
2. Gather technical and financial documentation
We help collect engineering notes, testing records, and qualified expense data.
3. Document qualifying projects
RCG prepares structured technical summaries through our CrediTrak system.
4. Review qualified research expenses
We assess wages, supplies, and contractor costs tied to qualifying work.
5. Deliver documentation to your CPA
Your CPA receives a complete audit-ready package.
6. Provide clarification when needed
RCG responds to taxing authorities using the documentation prepared.
How the IRS Defines Qualified Research
| Requirement | Meaning |
|---|---|
| Permitted Purpose | Work improves function, reliability, performance, or quality. |
| Elimination of Uncertainty | Teams resolve uncertainty related to capability, method, or design. |
| Process of Experimentation | Work involves testing, modeling, or evaluating alternatives. |
| Technological in Nature | Activity relies on engineering, science, or computer science principles. |
Documentation and Support
RCG prepares all required documentation for a compliant filing, including:
Technical summaries
Project descriptions
Activity narratives
Engineering and testing documentation
Qualified expense records
If clarification is requested, RCG responds using the audit-ready materials created for your engagement.
How RCG Works With Your Cleveland Team
Initial Review –
We learn about your Cleveland operations and identify qualifying activities.
Technical Discussions –
Our team gathers engineering and development details.
CrediTrak Documentation –
We organize all technical and financial information.
Deliverables for Your CPA –
We prepare a complete audit-ready package.
Support if Questions Arise –
RCG provides clarification when requested.
Common Misconceptions About the R&D Tax Credit
“We do not have a research lab.”
Most qualifying work occurs in engineering, testing, software, and production environments.
“We are not a technology company.”
Many Cleveland manufacturers and service-driven companies qualify.
“We only improve existing products.”
Enhancement qualifies when technical evaluation or testing is involved.
“This credit is only for large corporations.”
Small and mid-sized Cleveland companies claim the credit every year.
“We do not create new products.”
Improving systems, software, or production methods qualifies under federal rules.
“We already do this work, so it probably does not count.”
Technical testing, evaluation, and problem-solving align with IRS expectations.
Why Companies Across Cleveland Work With RCG
RCG combines engineering insight, accounting expertise, and clear communication. Our specialists have documented thousands of R&D studies, giving us the ability to identify qualifying activity efficiently and present it in a clean, audit-ready format.
We understand how engineering development, software refinement, testing, material evaluation, and production improvement occur in real Cleveland operations. Our role is to translate this work into documentation that supports a compliant R&D Tax Credit filing.
Start Your R&D Tax Credit Review
If your Cleveland business is developing, testing, refining, or improving products or processes, you may qualify for the R&D Tax Credit. RCG evaluates your technical work and prepares the documentation required for accurate filing.
Frequently Asked Questions
Are Cleveland manufacturers strong candidates for the R&D Tax Credit?
Yes. Material testing, tooling improvements, production refinement, and quality enhancements often qualify.
Do Cleveland software and IT companies qualify?
Yes. Software development often involves testing, validation, and refinement that align with IRS criteria.
Do engineering and design firms qualify?
Yes. Prototyping, modeling, testing, and technical development often meet R&D standards.
Does process improvement qualify?
Yes. Enhancing efficiency, reliability, or performance qualifies when technical steps are involved.
Do we need new products to qualify?
No. Improvements to existing systems or products can qualify.
What documentation is required?
Engineering notes, testing data, technical documents, project summaries, and qualified expense records.
What is the first step?
A conversation with RCG to confirm whether your activities align with IRS guidelines.
Our Serving Area
RCG assists clients in identifying and documenting available adoption assistance tax credits throughout the state of Ohio.
