How do you get two bites of the apple?
Let’s say you spend $500K on R&D development. The first bite of the apple is that you get a tax deduction of $500K – this increases your taxable loss which is nice, but there is no immediate benefit until you are profitable and can offset those profits with your accumulated losses.
The second bite is big, though. You can take that same $500K and throw it into the R&D Credit equation, which typically results in a 7% to 10% credit.
What this means: The IRS sends you a check for $35K to $50K.