SourceHOV Tax Blog Why Automated R&D Tax Credit Solutions Work Only For A Few

For decades, companies have been trying to design software that could accurately and completely capture a company’s R&D tax credits. The main reason that companies have been unsuccessful over the years is because the R&D tax credit rules are interpretive and guided by a 4-Part Test for R&D qualification. There is no decision tree that can accurately capture the full extent of R&D due to the interpretive and unique nature of each companies’ R&D efforts. So software solutions often fall short.