
for the R&D Tax Credit
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R&D Tax Credit

PRODUCTS AND PROCESSES
R&D Tax Credits for the Chemical & Formula Industry
Refunds are available for companies performing research within the Chemical & Formula Industries. The research credit provides dollar-for-dollar cash savings each year for companies performing activities related to the development of new or improved products and processes. These benefits could provide much needed cash to hire additional employees, increase R&D, expand production facilities, etc.
Many companies involved with chemicals & formulas are unaware that their efforts within designing and developing their products can yield a large amount of research credits. Examples of R&D activities related to the industry as well as potentially qualifying job titles are listed below.
Examples of Qualifying R&D Activities
- Automation of internal processes by developing and implementing new hardware and software systems
- Development and evaluation of new, improved, or more reliable raw materials, products, or formulas
- Experimentation to increase product yield, improve shelf-life, or discover new applications for existing chemicals
- Generating pilot batches of new products for testing and validation
- Refining manufacturing methods to improve efficiency or reduce environmental impact
- Support of direct research activities, such as quality testing, maintaining lab equipment, data collection, and regulatory compliance work
Potentially Qualifying R&D Job Titles
- Analytical Chemist/Scientist
- Chemical Engineer
- Formulation Chemist/Scientist
- Lab Assistant, Lab Technician
- Quality Assurance/Control (QA/QC) Analyst, Associate, Chemist/Scientist, Manager
- Research Associate, Research Scientist
AMT Offset
For tax years beginning after December 31, 2015, eligible small businesses (those with $50 million or less of gross receipts) may claim the research credit against AMT liability.
Up to $250,000 in Payroll Tax
Qualified start-up companies may elect to use up to $250,000 of the research credit against payroll taxes. Treasury Regulations have substantially broadened the range of taxpayers who are eligible for the credit. Start-ups to publicly traded businesses who were previously unable to realize a benefit from this lucrative tax credit should reassess their eligibility.
Estimate Your Benefits with our FREE Calculators
Use our calculators for an estimate of state and federal R&D tax credit benefits or to determine if you can offset payroll tax using the R&D tax credit. It's easy to use and free. If at any time you have questions, contact us. We are here to help you realize your maximum tax benefit.
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Research and Development Tax Credit Insights

Manufacturing: Claiming R&D Credits for Improving Processes
07/24/2025Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube When most people hear “Research and Development,” they imagine high-tech labs, futuristic prototypes, or scientists in white coats. In reality though, Research & Development (R&D) Tax Credits are just as available to the manufacturing floor as they are to the science lab. Many companies in manufacturing, … Read More

Section 174A and the 2024 Filing Dilemma for Eligible Small Businesses: Do You File or Amend?
07/21/2025Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Jonathan Tucker | Principal, Research & Development Tax Credits As the dust settles following the passage of the One Big Beautiful Bill Act (OBBBA), many small businesses and their CPAs are navigating the mechanics of Section 174A, the newly enacted provision that restores the ability to … Read More

How to Claim R&D Credits After an Acquisition
07/17/2025Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube Acquiring another company isn’t just a strategic move that grows market share or expands a portfolio of products. Acquisitions can also unlock significant tax advantages. One area that companies often overlook is the Research and Development (R&D) Tax Credit, which can help them gain significant value … Read More

KBKG Announces Free Access to Dash.tax Through June 2026, Empowering Tax Advisors to Claim R&D Tax Credits for Clients
07/14/2025PASADENA, Calif. – July 14, 2025– KBKG, a recognized leader in specialty tax solutions, announced its flagship Research & Development (R&D) tax credit software, Dash.tax, is now available at no cost to approved tax preparers through June 30, 2026. The limited-time initiative enables Certified Public Accountants (CPAs) and other tax professionals to access the full power of Dash.tax-an … Read More

Claiming the R&D Tax Credit for Failed Projects
07/10/2025Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube Most businesses associate the Research and Development (R&D) Tax Credit with breakthrough innovations and completed projects. If a product launches successfully or a process gets optimized, it seems obvious to include those efforts in an R&D claim, but what happens when your project fails? Surprisingly, failure … Read More

R&D Expensing is Back: What the Section 174 Fix Means for Your 2024 Tax Strategy
07/08/2025Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Kevin Zolriasatain and Paul McVoy | Principals, Research & Development Tax Credits For the last two years, companies conducting qualified research have been burdened with an unfavorable tax provision that has made Research and Development (R&D) investments more expensive, at precisely the wrong time. That’s … Read More

KBKG Tax Insight: One Big Beautiful Bill – 2025 Tax Changes and Summary Chart
07/03/2025Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Gian Pazzia and Paul McVoy | Research & Development Tax Credits Breaking News – July 4, 2025 On July 4th, President Trump signed the “One Big Beautiful Bill Act” (OBBBA), marking a significant overhaul to federal tax policy. The signing reflects a major pivot in legislative … Read More

SALT Workaround Preserved, Real Estate & R&D Expensing Win Big. What Businesses Need to Know
06/30/2025Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Paul McVoy | Principal, Research & Development Tax Credits The reconciliation process for the “One Big Beautiful Bill” (OBBB) has entered its final phase, and in the past three days, Senate Republicans cleared a key procedural hurdle and released updated text that could reach the Senate … Read More

Texas Enhances R&D Credit, Allowing Companies to Claim More
06/27/2025By Bill Taylor and Giovanni Ortiz | Research & Development Tax Credits On June 1, 2025, Texas lawmakers passed Senate Bill 2206 legislation that significantly enhances the state’s R&D Tax Credit structure. The Governor signed this bill into law on June 17, 2025. Effective for franchise tax reports due on or after January 1, 2026, … Read More

Retroactive and Permanent R&D Expensing Restored Under Proposed Senate Legislation
06/17/2025Follow KBKG on Social Media Linkedin Facebook X-twitter Youtube By Jonathan Tucker | Principal, Research & Development Tax Credits The Senate Finance Committee has proposed a significant change to the way U.S. businesses deduct their research and development (R&D) expenses. If passed, the bill would reverse a major change that took effect in 2022 based on … Read More