Lancaster R&D Tax Advisors
R&D Tax Credit
R&D Tax Credit Services for Lancaster, Ohio Businesses
Lancaster businesses across manufacturing, engineering, industrial technology, product design, and software development consistently refine systems, improve production methods, enhance product functionality, and solve technical challenges. These real-world activities frequently qualify for the federal Research and Development (R&D) Tax Credit—even for companies without formal research facilities.
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, technical specialists, and tax professionals works exclusively on R&D Tax Credits and Cost Segregation Studies. Lancaster companies rely on RCG for accurate, organized, audit-ready documentation that supports compliant filings.
Many businesses assume the R&D Tax Credit is only for large corporations. In reality, small and mid-sized Lancaster companies perform qualifying technical work every year. RCG identifies these activities and prepares the documentation required for accurate filing by your CPA.
What the R&D Tax Credit Is
The R&D Tax Credit is a federal incentive that supports engineering development, testing, process improvement, software advancement, and technical problem solving. Lancaster companies do not need a research lab to qualify. Much of the qualifying work occurs during prototyping, evaluating alternatives, refining production methods, and improving performance.
Ohio also provides a state-level incentive depending on the company’s circumstances.
How the R&D Tax Credit Strengthens Your Lancaster 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 immediate financial value when eligible.
Support for ongoing development and innovation: Testing, prototyping, engineering analysis, and software refinement qualify when technical steps are involved.
Potential payroll tax benefit for eligible small businesses: Some early-stage companies apply a portion of the federal credit toward payroll taxes.
Recognition for engineering and technical advancement: The credit supports work that improves products, systems, software, and manufacturing methods.
RCG helps Lancaster organizations determine which activities qualify and prepares precise documentation that aligns with IRS expectations.
What the R&D Tax Credit Can Do for Your Lancaster Operations
Lancaster companies routinely perform engineering evaluations, prototype development, testing, software updates, production refinement, and material analysis. When teams evaluate options, test performance, refine features, or solve technical challenges, they often perform work that qualifies under federal R&D rules.
RCG analyzes these activities, interprets the technical details, and prepares audit-ready documentation. When eligible, businesses also secure credits for open tax years, strengthening financial performance.
Sectors That Qualify for R&D Tax Incentives
Lancaster businesses across numerous development-focused areas qualify for the R&D Tax Credit, including:
Manufacturing
Engineering and product design
Software and IT development
Industrial technology
Medical and scientific technology
Tooling, machining, and fabrication
Specialized production
Product improvement and testing
Eligibility depends on the technical nature of the work, not the size of the company.
Who Qualifies for the R&D Tax Credit
Lancaster companies qualify when they perform activities such as:
Prototype creation and refinement
Engineering evaluations and feasibility work
Material, structural, or performance testing
Improving production efficiency or reliability
Enhancing product or system functionality
Certification or compliance testing
Modifying equipment or processes
Developing or updating software
Implementing automation or control systems
Analyzing engineering or testing data
Using CAD or 3D modeling tools
RCG determines how each activity aligns with IRS requirements.
Steps to Claim Your R&D Tax Credit
1. Identify qualifying activities
RCG reviews engineering, development, software, and production work.
2. Gather supporting documentation
We collect engineering notes, technical data, testing documentation, and qualified expense records.
3. Document qualifying projects
RCG prepares structured technical summaries using CrediTrak.
4. Review qualified research expenses
We analyze wages, supplies, and contractor costs tied to qualifying work.
5. Deliver audit ready documentation
Your CPA receives a complete and compliant filing package.
6. Provide clarification when needed
If taxing authorities request details, RCG responds using the prepared documentation.
How the IRS Defines Qualified Research
| Requirement | Meaning |
|---|---|
| Permitted Purpose | Work improves function, performance, reliability, or quality. |
| Elimination of Uncertainty | Teams resolve uncertainty related to capability, method, or design. |
| Process of Experimentation | Work includes testing, modeling, prototyping, or evaluating alternatives. |
| Technological in Nature | Activities rely on engineering, physical sciences, biological sciences, or computer science. |
RCG helps Lancaster companies understand how their activities meet these standards.
Documentation and Support
The R&D Tax Credit requires detailed, well-organized technical documentation. RCG prepares:
Project descriptions
Technical summaries
Testing and engineering details
Activity narratives
Qualified expense records
If taxing authorities request clarification, RCG provides responses based on the documentation created during your engagement.
How RCG Works With Your Lancaster Team
Initial Review –
We learn about your Lancaster operations and identify qualifying technical activities.
Technical Discussions – Our specialists gather detailed information about engineering, production, testing, and software work.
CrediTrak Documentation –
We organize project and expense data using RCG’s proprietary platform.
Deliverables for Your CPA – We prepare a complete, audit-ready documentation set.
Support if Questions Arise –
RCG provides clarification whenever additional details are requested.
Common Misconceptions About the R&D Tax Credit
“We do not have a research lab.”
Most qualifying work occurs in engineering, testing, production, or software environments.
“We are not a high-tech company.”
Many Lancaster manufacturers and service-focused businesses qualify.
“We only improve existing products.”
Enhancements qualify when technical evaluation or testing is involved.
“This credit is only for large corporations.”
Small and mid-sized Lancaster companies qualify regularly.
“We do not develop new products.”
Improvements to existing systems or production methods qualify.
“We already perform this work, so it probably does not count.”
Evaluating alternatives, solving technical problems, and testing concepts often satisfy IRS criteria.
Why Lancaster Companies Work With RCG
RCG combines accounting expertise, engineering insight, and clear technical communication. Our specialists have completed thousands of R&D tax credit studies, giving us deep experience in identifying qualifying work and documenting it accurately.
We translate engineering development, software refinement, technical testing, and production improvement into audit-ready documentation that supports a compliant federal R&D filing.
Start Your R&D Tax Credit Review
If your Lancaster company is developing, refining, testing, or improving products or processes, you may qualify for the R&D Tax Credit. RCG reviews your technical activities and prepares the documentation required for accurate filing.
Frequently Asked Questions
Are Lancaster manufacturers strong candidates for the R&D Tax Credit?
Yes. Many improve production processes, materials, tooling, and product quality in ways that align with IRS requirements.
Do Lancaster software and IT companies qualify?
Yes. Software development often involves testing, refinement, and technical evaluation.
Do engineering and design firms qualify?
Yes. Modeling, prototyping, technical adjustments, and design evaluation often qualify.
Does the credit apply to process improvements?
Yes. Enhancing performance, reliability, efficiency, or quality qualifies when technical steps are involved.
Do we need new products to qualify?
No. Improvements to existing systems or production methods frequently qualify.
What documentation is required?
Engineering notes, testing details, project descriptions, technical data, and qualified expense records. RCG prepares a complete audit-ready package.
What is the first step?
A brief discussion with RCG to confirm whether your activities align with IRS requirements.
Our Serving Area
RCG assists clients in identifying and documenting available adoption assistance tax credits throughout the state of Ohio.
