We build your business its own tools — and run its AI.
Stop renting software someone else owns. We build the tools your business actually needs, run the AI behind them, and the tax code pays for most of it.
You write the check. We do the work.
Most people have the income but not the hours — so we do the building. We map where your money goes, build the tools your business needs, run your AI, and document and file it all. The tax code pays for most of it.
We map where the money goes.
Every recurring tool mapped. Most businesses spend $30k–$60k over five years on software that could be built better in-house.
We build the tools you need.
Custom apps, automations, and internal tools built for the way your business actually works — private, in-house, and yours.
We run your AI function.
Ongoing R&D into how AI applies to your specific business — engineered into your workflow, not generic tooling.
We document and file.
Every hour, dollar, and iteration logged year-round so the R&D deduction and credit are defensible.
You write the check. We turn it into private tools built for your business, real R&D on the books, and a tax bill cut down to size.
Deduction. Credit. Both.
Lowers what you're taxed on.
Earn $100,000, deduct $20,000, and tax applies to $80,000. Helpful — but indirect.
Lowers the tax itself.
A $10,000 credit against a $30,000 bill leaves $20,000. Dollar-for-dollar. The R&D program gives you both.
How the benefit stacks.
The Deduction
Reduce taxable income.
Qualifying development spend is deducted in the year it is incurred. Your taxable income falls before any rate is applied.
Example
Spend $50,000 on qualifying work. In a 30% bracket, that is roughly $15,000 less in tax — before the credit.
The Credit
Reduce the tax itself.
A portion of qualifying expense returns as a dollar-for-dollar credit against tax owed. Most filers use ASC at 14% above baseline.
Example
A $10,000 build, 65% contractor haircut, ASC and Section 280C applied — credit lands $500–$1,400 per $10K. Stacked on the Section 174A deduction.
The Payroll Offset
Cash back, pre-profit.
Qualified startups can apply up to $500,000 per year of unused credit against payroll tax — real cash without taxable income.
Example
Eligibility depends on gross receipts history and other qualifying factors.
Other firms quote headline math (“20% of spend”). We quote your exact credit at engagement after we look at your structure.
Broader than you think.
Building software or a platform
Developing an app or automation
Improving a product or process
Engineering a new method
Building proprietary internal tools
Using AI to solve a problem
What matters is experimentation and technical uncertainty — not the industry.
Four questions that decide it.
Is it real development work?
Tied to actual development — not marketing, routine maintenance, or post-hoc QC.
Grounded in science or engineering?
The work rests on technical principles — computer science, engineering, physics, biology.
Tied to what you sell or use?
Connected to a product, process, software, formula, or invention your business uses or sells.
Are you experimenting?
The key word is uncertainty. You are evaluating approaches and working through technical unknowns.
What it looks like in practice.
On a $0 build: roughly $0–$0 in first-year combined tax savings, lower ongoing software costs, and credit — plus a private tool that keeps working for you.
Ranges are based on real engagement structures, not headline math. Actual results depend on your bracket, the SaaS replaced, your structure, and how activity is documented. Not a guarantee of outcomes.
Find out if you qualify.
A discovery call is the first step. We review your activity and tell you candidly whether you have qualifying R&D work.
The information on this page is for educational purposes only. It does not constitute tax advice and should not be relied upon as a substitute for consultation with a qualified tax professional. R&D credit eligibility, deduction amounts, and payroll offset availability depend on your specific facts and circumstances. Arqon Tax does not guarantee any specific tax outcome.