R&D Tax Credit Optimization for Software Companies

This case study details the collaboration between Aprio and a private equity-backed B2B software solutions company focused on maximizing federal and state R&D tax credit opportunities. The document outlines how Aprio provided guidance in navigating Section 41 and Section 174 tax credit calculations, resulting in significant tax benefits for the client. In the first year of partnership, the company received over $600,000 in tax credits, followed by more than $400,000 in the subsequent year. Aprio's methodology for Section 174 allowed the company to minimize the impact of new regulations, reducing their tax liability by $220,000. The case study also highlights the company's ability to recover state payroll offsets amounting to $300,000 in 2022 and over $200,000 in 2023, enabling them to allocate resources towards growth initiatives. Aprio's expertise in R&D tax credits is emphasized as a key factor in achieving these financial outcomes.