Frequently Asked Questions

Established in 1981, the Research & Development Tax Credit is a federal incentive that allows companies to reduce income tax liability in the current tax year and receive a cash refund for taxes paid in the last three years. In 2015, when the Protecting Americans From Tax Hikes (PATH) Act was put into place, the R&D Tax Credit became permanent and greatly expanded the eligibility for businesses to qualify…including chiropractic and other healthcare practices. The Research & Development Tax Credit is intended to encourage businesses to invest in activities that lead to innovation in patient care, technological advancement, and economic growth. Many states have their own R&D Tax Credit, and qualifying businesses can claim both! 

Most practitioners are unaware that their daily operations could qualify for a dollar-for-dollar Tax Credit. An activity that meets the 4-part test is a qualifying research activity and can potentially qualify for claiming R&D Tax Credit.

Determining your eligibility is very complex and fact-specific, as each practice’s activities and expenditures may vary significantly. The good news is we do all the heavy lifting to quantify and document exactly how and why you qualify for this credit. By providing us with tax and wage information we can figure it out over the course of an hour-long meeting where we will discuss what you and your staff do, how you do it and how much time you spend performing certain activities.

While it is impossible to give an estimate of the available tax credit/refund based on practice revenue or payroll, our average chiropractic client’s R&D tax credit refund is over $8,000 per year. Since the credit is retroactive up to 3 years and most our clients are applying for the first time, this means the average return for our clients is $24,000!