Delaware County R&D Tax Advisors
R&D Tax Credit Support for Delaware County Businesses
Delaware County includes a mix of advanced manufacturers, coatings and chemical formulation operations, plastics producers, food processing facilities, engineering service groups, and software development teams. These companies frequently refine products, test materials, develop prototypes, improve automated systems, or enhance digital workflows. When properly documented, many of these activities may qualify for the federal R&D Tax Credit.
RCG has completed more than 25,000 R&D tax credit studies and identified more than $750 million in savings for businesses nationwide. Our engineers, CPAs, and technical analysts focus exclusively on R&D services, helping Delaware County companies identify eligible activity and prepare audit-ready documentation.
Understanding the R&D Tax Credit
The R&D Tax Credit supports businesses working to improve or develop new products, processes, materials, chemical formulations, or software solutions. Projects may qualify when they involve:
Structured testing or experimentation
Evaluating new or alternative materials
Prototyping or formula adjustments
Engineering-based problem-solving
Software development grounded in computer science principles
Delaware County businesses often engage in these activities while developing coatings, refining formulations, improving production reliability, or enhancing digital systems.
How the R&D Credit Benefits Delaware County Companies
Qualified research expenses may reduce federal tax liability and help businesses reinvest in:
Technical staffing and engineering support
Formulation testing and material evaluation
Automation and control system updates
Software development and data platform enhancements
New production capabilities and equipment
Eligible businesses may also review open tax years. Startups that meet IRS criteria may apply the credit to the employer portion of payroll taxes.
Where R&D Activity Commonly Occurs in Delaware County
RCG frequently identifies qualifying activities across Delaware County, including:
Testing coating durability or altering chemical formulations
Refining plastics and material behavior through iterations
Improving recipes, temperature profiles, or packaging conditions in food production
Enhancing automation logic or system reliability
Developing or refining prototypes for mechanical or consumer products
Improving software workflows, integrations, or system performance
Conducting structured trials to validate technical changes
These efforts rely on experimentation and engineering analysis, aligning with IRS expectations.
Sectors That Qualify for R&D Tax Incentives
Industrial Coatings & Chemical Formulations
Testing durability, adjusting chemical mixes, refining application methods, evaluating material performance
Advanced & Precision Manufacturing
Prototype testing, process refinement, tolerance adjustments, evaluating production methods
Plastics, Polymers & Material Development
Testing formulations, refining structural behavior, assessing durability or chemical resistance
Food Production & Packaging Engineering
Refining formulations, testing processing conditions, improving packaging stability
Automation, Robotics & Control Systems
Updating control logic, improving workflow reliability, integrating new system components
Software Development & Data Systems
Developing features, improving integrations, enhancing data handling, building internal-use applications
Logistics & Equipment Engineering
Designing prototypes, evaluating mechanical systems, refining component performance
Who Qualifies for the R&D Tax Credit
Delaware County companies may qualify when they conduct activities such as:
Testing coating formulations or evaluating surface performance
Designing or refining equipment or product prototypes
Testing new plastics or alternative materials
Enhancing automation, robotics, or industrial controls
Developing or improving internal-use or customer-facing software
Conducting structured experimentation to resolve technical uncertainty
Evaluating design or process variations to improve results
Eligibility depends on the technical process, not business size or industry type.
Steps to Claim Your R&D Tax Credit
1. Identify qualifying activity
RCG meets with your engineering, production, chemical, and software teams to understand where experimentation occurs.
2. Gather supporting documentation
We collect test results, formulation notes, design files, prototype records, production data, logs, and payroll information.
3. Build project narratives
RCG prepares clear narratives describing uncertainty, experimentation, and technical objectives.
4. Evaluate qualified research expenses
We identify eligible wages, materials, supplies, and contractor activity linked to qualifying efforts.
5. Deliver an audit-ready package
Your CPA receives IRS forms, project narratives, and supporting schedules.
6. Assist if questions arise
If taxing authorities request clarification, RCG responds using the documentation prepared during your study.
IRS Requirements: The Four-Part Test
Permitted Purpose: Work must aim to improve performance, reliability, function, or quality.
Elimination of Uncertainty: Teams must face technical uncertainty involving method, design, or capability.
Process of Experimentation: Projects must include testing, trials, prototyping, simulation, or evaluating alternatives.
Technological in Nature: Efforts must rely on engineering, chemistry, physical sciences, biological sciences, or computer science.
Documentation and Support for Delaware County Businesses
RCG prepares engineering notes, formulation logs, prototype summaries, testing documentation, cost schedules, and wage analyses that demonstrate how research activities align with IRS requirements.
How RCG Works With Your Delaware County Team
RCG begins by examining your operations to identify where technical development occurs. We meet with formulation chemists, engineers, production personnel, and software teams to gather details about testing, material adjustments, prototyping, automation updates, and system enhancements. All information is compiled into a complete audit-ready package for your CPA.
Common Misconceptions About the R&D Tax Credit
Many Delaware County companies assume their work is too routine to qualify. In reality, qualifying activity often occurs when adjusting chemical mixes, validating formulations, improving packaging, testing materials, refining manufacturing processes, or enhancing software performance. Eligibility depends on the technical process, not the type of facility.
Why Delaware County Companies Work With RCG
RCG specializes in documenting engineering, chemical, manufacturing, automation, and software activities that meet IRS expectations. Our technical and tax expertise helps Delaware County businesses pursue the R&D Tax Credit with confidence and clear documentation.
Start Your R&D Tax Credit Review
If your Delaware County business develops, tests, refines, or improves coatings, materials, processes, or software, the R&D Tax Credit may apply.
Frequently Asked Questions for Delaware County Businesses
Do Delaware County manufacturers qualify for the R&D Tax Credit?
Many qualify when they refine production processes, evaluate prototypes, test materials, or improve equipment performance.
Does coatings or chemical formulation work qualify?
It may when work involves adjusting formulations, evaluating surface behavior, testing durability, or refining application methods.
Can food production or packaging improvements qualify?
Yes. Adjusting ingredients, testing processing conditions, or improving packaging stability may qualify when experimentation is involved.
Do Delaware County software teams qualify for R&D incentives?
Often yes. Developing features, improving system integrations, refining architecture, or resolving technical challenges may qualify.
Can Delaware County startups apply the R&D credit toward payroll taxes?
Yes. Eligible startups may apply the credit toward the employer portion of payroll taxes.
What documentation supports a strong R&D claim?
Formulation records, testing logs, prototype data, design notes, engineering documentation, and payroll records help substantiate the claim.
