New platforms, APIs, algorithms; ML/AI models, data pipelines, security, integrations, blockchain & fraud tooling.
Estimate your credit →Software companies are among the most consistent R&D credit claimants because the daily work of building and improving software maps directly onto the four-part test. Developing a new platform, designing novel algorithms, training and tuning ML models, or hardening security all involve resolving technical uncertainty through iterative experimentation.
The credit covers far more than greenfield product work. Re-architecting for scale, building data pipelines, integrating disparate systems, and developing fraud or anomaly-detection tooling typically qualify when the outcome isn't certain at the outset.
Wages for time these roles spend on qualified research may count toward your credit.
Illustrative example using sample figures. Your actual credit depends on your facts; see Form 6765 and consult a tax professional.
The IRS requires qualifying research to satisfy four tests. Here's how each typically maps in this industry:
The activity aims at improving the performance and functionality of the platform.
The work relies on computer science and software engineering.
Unsure whether a given architecture will meet latency/scale targets.
Teams use prototyping, A/B testing, and benchmarking alternative designs.
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