What is the R&D tax credit?

The R&D tax credit (IRC Section 41) is a federal tax incentive that rewards businesses for investing in innovation — including developing new products, improving processes, building software, and solving technical challenges.

How much does Alexander & Blake charge?

Alexander & Blake typically works on a contingency basis. There is no upfront retainer — our fee is based on a percentage of credits identified, paid after filing.

Does my business qualify for R&D tax credits?

If your business develops or improves products, processes, software, or techniques, and faces technical uncertainty in doing so, you may qualify. The credit applies across many industries including manufacturing, software, construction, and engineering.

Software and Technology Industry

Your Code Is Worth More Than You Think.

Software companies routinely miss out on R&D tax credits for work they are already doing — custom development, new algorithms, platform building, and internal tools all qualify.

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What Software Activities Qualify?

Most software development qualifies — including work your team does every day

Custom Software Development

Building new software products, platforms, or applications where the technical approach involves uncertainty and experimentation.

Algorithm Development

Creating new algorithms, data models, machine learning systems, or optimization logic that solves technical problems in novel ways.

API and Integration Work

Developing new APIs, system integrations, or data pipelines that require technical experimentation to achieve the desired outcome.

Internal Tools

Building proprietary internal tools, dashboards, or automation systems that improve business operations through technical innovation.

Performance Optimization

Significant work to improve system performance, scalability, reliability, or security through technical research and testing.

New Technology Adoption

Experimenting with and implementing new technologies, frameworks, or architectures to solve business problems in new ways.

Real Results for SC Software Companies

A Greenville-based software firm had been developing a custom platform for 3 years without ever claiming R&D credits. We identified $800,000 in qualifying developer salaries and recovered $156,000 in combined federal and SC state credits.

IndustrySaaS Software Development

LocationGreenville, SC

Qualifying Expenses$800,000

Federal Credit$116,000

SC State Credit$40,000

Total Recovered$156,000

Frequently Asked Questions

Does off-the-shelf software development qualify?

Internal use software can qualify if it meets specific IRS tests. Custom-developed software for clients or for sale almost always qualifies. We evaluate each project individually.

Do developer salaries count as qualifying expenses?

Yes. Developer and engineer wages spent on qualifying R&D activities are the largest category of qualifying expenses for most software companies. Contract developer costs also qualify at 65%.

What if we use agile or iterative development?

Agile development actually aligns well with the IRS process of experimentation test. Sprint-based development with iteration and testing is a strong indicator of qualifying R&D activity.

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Find out how much your development work qualifies for. No upfront cost. No obligation.

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