The R&D Credit · Guide
What the research credit is, and why it exists
The Section 41 research credit is a permanent, dollar-for-dollar federal credit for increasing qualified research spending. Here is how it works, who claims it, and where taxpayers get it wrong.
By The Carryforward Desk · 8 min read · Read the guide →
Most filers land on the ASC. The methods, worked with real numbers, in How to calculate the R&D credit.
The Index
278 pieces · everything, in order- Cannabis and the research credit: why Section 280E blocks most claims
- Stock options and RSUs as qualified research expenses: the W-2 Box 1 rule
- AI companies and the research credit: models, training compute, and proving uncertainty
- Section 41(f)(3): how buying or selling a business resets research credit base amounts
Courses
Guided tracks · all 6 →Exits & M&A · Brief
Escrows and basis at closing: when held-back proceeds become income
Indemnity escrows are usually taxed as installment payments when released, with an imputed-interest slice — not at closing. But the details turn on who owns the escrow, whether the seller elects out of Section 453, and what claims actually get paid.
State Credits · Brief
Refundable and transferable state R&D credits: where the credit becomes cash
A minority of states pay research credits in cash to companies with no tax liability — by refund, exchange, or sale. Which states, through which mechanisms, and what a 'refundable' credit is actually worth after the haircuts.
Cost Seg · Brief
Recapture planning before the sale
Cost segregation's exit bill: Section 1245 ordinary-income recapture on personal property, unrecaptured Section 1250 gain at 25% on the building, and how price allocation, installment notes, 1031 exchanges, and the basis step-up at death change the answer — including when simply holding wins.