In this episode of Poised for Exit, John Ammannand Tim Urban, CPAs with John A. Knutson & Co., join the show to explain how R&D tax credits work and why many business owners may qualify without realizing it. They discuss the fundamentals of the federal R&D tax credit, including the types of activities that may qualify and why these credits are not limited to large corporations or technology companies.

John and Tim also break down common misconceptions around R&D credits, including the idea that innovation must be new to the world rather than simply new to the company itself. The conversation covers the IRS four-part qualification test, the importance of documentation, why failed projects can still qualify, and how startups may be able to apply credits against payroll taxes.

The episode also explores AI-related investments, startup applications, and common concerns surrounding third-party R&D credit firms. John and Tim explain what business owners should understand before pursuing a claim and offer practical insight into how companies can better evaluate potential opportunities and requirements surrounding R&D tax credits.

Connect with John Ammann here
Connect with Tim Urban here
Learn More about John A. Knutson & Co.here

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Founder, Consultant, Author, Pod-caster and Instructor