Your Engineers Can
cut your tax bill
The federal and state R&D credit pays back part of what you spend building your technology, even before revenue. ClaimKit finds every eligible dollar in your records and attaches the evidence to defend it.
Membrane Engineer
W-2 wages · TY2025
- Pilot test plans and 26 weekly pilot reports · Google Drive
- 112 bench tests of flux, rejection and fouling · Uploaded
- 38 tickets in the “Module redesign” project · Jira
- 24 payroll runs, Box 1 wages · QuickBooks
- Prototype modules and pilot materials41 invoices · 3 pilots$250,000
- Outside lab — PFAS and rejection testing (65%)12 invoices · 180 samples$65,000
- Controls Engineer — pilot skid control logic214 commits · 36 tickets$108,800
Loved by Finance Teams and Founders
“The R&D evidence finding was excellent. This addressed a massive pain point for us, and the ROI was very very good. Would recommend to anyone!”
Geraldine
CEO, Lewi Software
“I cancelled my accountants mid-project, paid them for their time, and started fresh with ClaimKit – it was still cheaper and faster than letting them finish.”
Kyel Steensma
COO, Edexia
“Enjoyed every bit of using this, it is happy to work with raw data and we didn't need to write the report ourselves. It saved a lot of time compared to traditional consultants.”
Sayan
COO, Fluer
“Efficient, effective with an emphasis on details.”
Rizal Evans
CEO, Evimien
“The R&D evidence finding was excellent. This addressed a massive pain point for us, and the ROI was very very good. Would recommend to anyone!”
Geraldine
CEO, Lewi Software
“I cancelled my accountants mid-project, paid them for their time, and started fresh with ClaimKit – it was still cheaper and faster than letting them finish.”
Kyel Steensma
COO, Edexia
“Enjoyed every bit of using this, it is happy to work with raw data and we didn't need to write the report ourselves. It saved a lot of time compared to traditional consultants.”
Sayan
COO, Fluer
“Efficient, effective with an emphasis on details.”
Rizal Evans
CEO, Evimien
Part of Your R&D Spend comes back as credit
Wages, supplies and contractors spent on qualified research come back as credits against income tax, payroll tax and state tax. The ClaimKit study works out how much of your spend qualifies and documents why.
- Engineering & support salary
- R&D supplies
- Contractors
Qualified research
your projects
ClaimKit study
- Payroll tax offset
- Income tax credit
- State credits
Does Your Work Qualify?
Qualified R&D projects must pass all four tests below.
- Permitted purpose
It Improves What You Make
A new or better product, process or software.
- Technological in nature
It Rests on Hard Science
Engineering, chemistry, physics, biology or computer science.
- Technical uncertainty
The Answer Wasn’t Known
You weren’t sure it would work, or how to build it.
- Process of experimentation
You Tested Your Way There
Models, prototypes and trials. Failed pilots count too.
Example R&D Projects
Advanced Treatment
Membranes, reactors, PFAS destruction.
Monitoring and Sensing
Sensors, analyzers, firmware, algorithms.
Resource Recovery
Nutrients, biosolids, brine, energy.
Engineered Equipment
New or scaled-up pumps, screens and blowers.
Controls and Software
Control logic, SCADA, AI, digital twins.
Pilots and Validation
Bench trials, pilot skids, field tests.
Usually excluded: routine QA after production starts, market research, research outside the US, and work a customer or grant pays for. The rest of your R&D still counts.
What It’s Worth
The credit is a share of four kinds of eligible US spending.
Wages
Staff doing, supervising or supporting the research. Founders on payroll count.
Supplies
Materials used up in prototypes, pilots and lab work.
Contract Research
65% of what you pay US contractors to do research for you.
Cloud Computing
Rented compute for simulation, modeling and dev/test. Not production hosting.
Not included: capital equipment, office rent, overhead, research outside the US.
A Seed-Stage Membrane Company
| Qualified expense | Amount |
|---|---|
| 8 engineers, $1.12M payroll, 85% on R&D | $952,000 |
| Prototype and pilot materials | $250,000 |
| Lab testing ($100K at 65%) | $65,000 |
| Qualified expenses | $1,267,000 |
| 2025 credit (6%) | $76,000 |
Illustrative. First-time claim, simplified credit method, before Section 280C and state credits.
Missed Earlier Years? Amend Them
Four years: $297,000
- 2023, amended$36,0006% of $600K
- 2024, amended$54,0006% of $900K
- 2025, this year$76,0006% of $1.27M
- 2026, estimated$131,00014% method on $1.4M
Illustrative figures. The rate follows your R&D history, not past claims: after three years of spend it’s 14% of spend above half the three-year average. Amended-year credits come back as a refund if you paid tax, or carry forward up to 20 years if you didn’t. The payroll offset can’t be added on an amended return.
No Revenue Yet? Take It as Cash
Use up to $500,000 of credit a year against employer payroll taxes, starting the quarter after you file.
You qualify with:
- Under $5M in gross receipts in the credit year
- First revenue in the last five years
Elect it on a timely filed return (extensions count), not an amended one. Up to five years.
For calendar-year C-corps whose 2025 return is on extension.
How ClaimKit Works
From your records to an audit-ready package your CPA can file
Connect Your Tools
Link QuickBooks, Jira, GitHub or Google Drive, or upload pilot data, lab results and timesheets. No interviews.
AI Checks Every Item
Every expense is tested against the four-part test and linked to the pilot data, lab results and engineering work behind it.
Expert Review and Delivery
An ex-KPMG specialist reviews every item; your CPA gets a filing-ready Form 6765, state credits and the full R&D study.
How ClaimKit Compares
Questions Founders and Engineering Teams Ask
Who in water technology can claim the credit?
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Companies that pay US income or payroll tax: treatment technology and equipment makers, sensor and software companies, and engineering firms developing their own products. Pre-revenue startups can use it against payroll tax. Public utilities can’t use the credit themselves, but the companies building technology for them often can.
We don’t have revenue yet. Is the credit worth anything?
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Yes. With under $5M in gross receipts and first revenue within the last five years, you can use up to $500,000 of credit a year against employer payroll taxes, starting the quarter after you file. It has to be elected on a timely filed return, so it can’t be added to an amended one.
What kinds of projects qualify?
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Work that passes the four-part test: it improves a product, process or software, rests on engineering or science, starts without a known answer, and gets there by testing. In water technology that covers membranes, reactors and PFAS destruction, sensors and firmware, resource recovery, new or scaled-up equipment, control software, and the bench trials and pilots that prove them out. Failed pilots count too.
What costs can we claim?
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W-2 wages for staff who do, directly supervise or directly support the research, including founders on payroll; materials used up in prototypes, pilots and lab work; 65% of what you pay US contractors and outside labs to do research for you; and cloud computing for simulation, modeling and dev/test. Capital equipment (including pilot skids you keep), office rent and overhead aren’t included.
Can we claim for earlier years?
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Usually. You can generally amend returns filed in the last three years. Amended-year credits come back as a refund if you paid tax, or carry forward up to 20 years if you didn’t. The payroll tax offset is the exception: it can only be elected on an original, timely filed return.
We have grants, or a customer paid for our pilot. Does that work count?
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Work a grant or customer pays for is usually excluded, but the rest of your R&D still counts. A paid pilot can still qualify if you’re only paid when it works and you keep the rights to what you learn, so we check the terms of each grant and contract.
Do you file our tax return?
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No. Your CPA files as usual and attaches our package: Form 6765, state credits, Section 174 schedules and the full R&D study.
Which tools do you connect?
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QuickBooks, Xero, Jira, Notion, Google Drive and GitHub, or upload pilot data, lab results, timesheets and project files.
Find Out What Your Projects Are Worth in a 30-minute call
Tell us what you’re building. We’ll walk through which projects qualify, what they’re worth this year and in earlier years, and whether you can take the credit as cash.