Software and technology are a booming part of the U.S. R&D market.  This sector has not only continued to show growth recently, it has more utility patent applications than any other industry.  While patents are not required for claiming a credit, and not all good ideas get patented, they are a good indicator of a market sector rife with qualified activities and subsequent tax reductions. 

The following list provides some examples of the qualified activities that can generate tax refunds or reduced tax bills:

  • Designing and Writing Code;
  • Developing Software Architecture and Infrastructure;
  • Beta Testing;
  • Developing Firmware; and
  • Improvement of Existing Features & Functionality.

Industry Case Studies

e-Commerce Website


Revenue: $30mm

Credit: $225k

Qualifying Activities: Coding, Database Optimization, QA

Qualifying Personnel: Project Managers, Developers, Software Engineers, CTO

Systems Integrator


Revenue: $10mm

Credit: $140k

Qualifying Activities: Interface Integration, Network Engineering, QA 

Qualifying Personnel: Network Engineers, Project Managers, Sys Admins, Developers

App Developer


Revenue: $3mm

Credit: $65k

Qualifying Activities: Architecture Development, Coding, A/B Testing, QA

Qualifying Personnel: Project Managers, Developers, Scrum Master, Founder