Beyond the Lab: Making the Most of the U.S. R&D Tax Credit

Don’t miss the insights from our webinar.

Originally aired on March 25 , 2026

In this webinar replay, our specialists explore how companies across industries —with a focus on medical and pharmaceutical organizations — can leverage the U.S. R&D Tax Credit to turn innovation into meaningful financial benefit.

What you’ll learn

Q&A

The responses to the questions asked during the webinar were prepared by our experts.

These responses are provided for informational purposes only and do not constitute legal, tax, or financial advice. For any questions related to your specific situation or that of your organization, please contact us directly.

If we test a new process but it only improves things slightly, does that still count as R&D?

Yes.
There is no minimum threshold for improvement. Even small, incremental changes qualify. In fact, the R&D Tax Credit is designed to reward continuous improvement , meaning incremental R&D efforts can increase your credit over time.

Is there a limit based on revenue or cash flow?

For the standard (income tax) credit: No.
There is no cap based on company size, revenue, or cash flow.

For the payroll tax credit: Yes.

Must have less than $5 million in gross receipts

Applies only during the first 5 years of eligibility

We outsource work to CROs — does that qualify?

Yes, in most cases.
Outsourced R&D can qualify as a contract research expense if:

You retain financial risk

You retain intellectual property (IP) rights

Typically, up to 65% of those costs can be included.

Can payroll costs still qualify if they are already deducted as a business expense?

Generally, yes.
Wages used for R&D activities can still be included in the credit calculation, even if they are already treated as business expenses.
(Final confirmation should be reviewed with a tax specialist based on your situation.)

About The R&D Tax Credit

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.

Many states have implemented their own version of the R&D Tax Credit, and qualifying businesses can claim both

The majority of businesses are unaware that their daily operations could qualify to a dollar-for-dollar Tax Credit, irrespective of industry or company size. An activity that meets the 4-part test is a qualifying research activity and can potentially qualify for claiming R&D Tax Credit.

About Leyton

Leyton is an international consulting firm & global leader in R&D tax credits that helps businesses leverage financial incentives to accelerate their growth and achieve sustainable performance. ​We simplify access to these complex incentives. Our combined teams of highly skilled Tax and Technical specialists maximize the financial benefits for businesses.​ With compliance always front of mind, we have been delivering optimal services for our client for over 25 years. This provides peace of mind that you will always receive the maximum benefit, without taking risks.

Leyton is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State Boards of Accountancy have the final authority on the acceptance of individual course for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.