Mentor R&D Tax Advisors
R&D Tax Credit
R&D Tax Credit Services for Mentor, Ohio Businesses
Mentor businesses in manufacturing, engineering, medical technology, product design, industrial systems, and software development consistently refine processes, develop new solutions, and improve performance across daily operations. Much of this technical work qualifies for the federal Research and Development (R&D) Tax Credit, even when companies do not maintain formal research departments.
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, and technical specialists focuses exclusively on R&D Tax Credits and Cost Segregation Studies. Mentor companies trust this experience for clear, accurate, audit-ready documentation that supports compliant filing.
Many Mentor organizations assume the credit applies only to large corporations. In reality, small and mid-sized companies across the region perform qualifying activities every year. RCG helps identify eligible work and prepares the documentation your CPA needs.
What the R&D Tax Credit Is
The R&D Tax Credit is a federal incentive that supports technical development, engineering improvement, experimentation, and software refinement. Companies in Mentor do not need research labs or formal R&D teams. Qualifying work often takes place during product design, prototype evaluation, system updates, testing, and production improvements.
Ohio also offers a state-level incentive depending on the company’s situation.
How the R&D Tax Credit Strengthens Your Mentor Business
Reduced tax liability: Qualified research expenses generate federal and, when applicable, state tax savings.
Improved cash flow through open-year review: Mentor companies may claim credits for open tax years, typically the last three years, providing immediate financial value when eligible.
Support for continuous innovation: Testing, prototyping, analysis, and software development often align with the technical standards of the credit.
Potential payroll tax benefit for eligible small businesses: Some early-stage companies apply a portion of the federal credit toward payroll taxes.
Recognition for technical improvement: Work that enhances products, processes, systems, or software aligns with federal qualification criteria.
RCG evaluates technical activities across your Mentor operations and prepares documentation that satisfies IRS requirements.
What the R&D Tax Credit Can Do for Your Mentor Operations
Mentor companies engaged in engineering, testing, software development, product design, industrial technology, and production improvement frequently conduct activities that qualify for the credit. When teams explore alternatives, refine prototypes, test performance, solve technical challenges, or improve efficiency, their work often meets federal research standards.
Many organizations do not realize how closely these routine operations align with IRS guidelines. RCG interprets your technical work and prepares all necessary audit-ready documentation. Mentor businesses can also secure credits for open tax years, strengthening overall financial performance when eligible.
Sectors That Qualify for R&D Tax Incentives
Mentor companies involved in technical development or improvement often qualify for the R&D Tax Credit, including organizations within:
Manufacturing
Engineering and product design
Medical and scientific technology
Software and IT development
Industrial technology
Tooling and fabrication
Specialized production
Consumer product innovation
Eligibility is determined by the technical nature of the work, not the size or industry classification.
Who Qualifies for the R&D Tax Credit
Mentor companies may qualify when they perform activities such as:
Engineering design and evaluation
Prototype development and refinement
Feasibility testing or early-stage analysis
Material, structural, or performance testing
Improving production efficiency
Enhancing product functionality or durability
Certification, compliance, or reliability testing
Modifying equipment for improved results
Developing or updating software systems
Implementing automation or control systems
Reviewing engineering data or test results
Using CAD or 3D modeling tools
RCG assesses how these activities align with federal requirements for qualified research.
Steps to Claim Your R&D Tax Credit
1. Identify qualifying activities
RCG reviews your engineering, technical, and development work.
2. Gather technical and financial information
We assist in collecting engineering notes, technical documents, testing data, and qualified expense records.
3. Document qualifying projects
RCG prepares structured technical summaries using CrediTrak.
4. Review qualified research expenses
We evaluate wages, supplies, and contractor costs related 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 clarification, RCG responds based on the documentation generated.
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 | Testing, modeling, evaluating alternatives, or structured analysis. |
| Technological in Nature | Activities rely on engineering, physical science, biological science, or computer science. |
RCG helps Mentor companies understand how each activity aligns with these federal criteria.
Documentation and Support
A successful R&D Tax Credit filing requires clear, organized, and technically accurate documentation. RCG prepares:0
Technical summaries
Project descriptions
Activity narratives
Engineering and testing documentation
Qualified expense details
If taxing authorities request clarification, RCG responds using the audit-ready documentation prepared during your engagement.
How RCG Works With Your Mentor Team
Initial Review –
We learn about your Mentor operations and identify technical activities.
Technical Discussions – Our specialists gather engineering, testing, and software details.
CrediTrak Documentation –
RCG organizes activity and expense information through our proprietary platform.
Deliverables for Your CPA – We prepare an audit-ready package for accurate filing.
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, production, testing, or software settings.
“We are not a high-tech company.”
Manufacturers, engineering firms, and service-based companies in Mentor often 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 Mentor companies qualify regularly.
“We do not develop new products.”
Improvements to existing systems, software, or processes meet federal criteria.
“We already perform this work, so it probably does not count.”
Testing, refinement, and engineering analysis frequently satisfy IRS expectations.
Why Mentor Companies Work With RCG
RCG combines accounting expertise, engineering insight, and clear technical communication. Our specialists have documented thousands of R&D studies, giving us the experience to identify eligible activities efficiently and present them in a clean, audit-ready format.
We understand how engineering development, testing, production adjustments, and software refinement operate in real Mentor environments. Our role is to convert this work into compliant documentation that supports a successful R&D Tax Credit filing.
Start Your R&D Tax Credit Review
If your Mentor 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 Mentor manufacturers strong candidates for the R&D Tax Credit?
Yes. Manufacturers improving production methods, tooling, materials, or product quality often qualify.
Do Mentor software or IT companies qualify?
Yes. Software work involving testing, refinement, data analysis, or technical problem-solving aligns with IRS expectations.
Can engineering and design firms qualify?
Yes. Modeling, prototyping, testing, and design refinement often satisfy research requirements.
Does process improvement qualify?
Yes. Enhancements to efficiency, reliability, quality, or performance qualify when technical steps are involved.
Do we need new products to qualify?
No. Improvements to existing products, systems, or production processes qualify.
What documentation is required?
Testing information, engineering details, activity summaries, project descriptions, and qualified expense records. RCG prepares the entire audit-ready package.
What is the first step?
A discussion with RCG to confirm whether your activities align with federal guidelines.
Our Serving Area
RCG assists clients in identifying and documenting available adoption assistance tax credits throughout the state of Ohio.
