Tax Credits and Incentives Advisory

Unlock Capital Through Innovation

Dutch American Capital provides R&D Tax Credit advisory services that help innovative companies convert investments in growth, technology, and process improvement into meaningful, dollar-for-dollar tax savings.

Whether you are a founder-led growth company, a portfolio company, or a mature operating business, DAC helps unlock tax credits that are frequently overlooked or materially underutilized.

What Is the R&D Tax Credit?

The Research & Development Tax Credit is a federal incentive designed to encourage innovation in products, processes, software, and services developed in the United States.

Eligible companies may benefit from:

• A direct reduction in federal income tax liability

• Retroactive claims for prior tax years

• Payroll tax offsets up to $500,000 for qualifying startups

• Availability across C-corps, S-corps, partnerships, and LLCs

Despite its broad applicability, most companies significantly underreport qualified research expenses due to misconceptions about eligibility, documentation, or audit risk

How Companies Qualify

DAC applies the IRS-defined Four-Part Test to determine eligibility:

1. Permitted Purpose – Activities intended to improve function, performance, reliability, or quality

2. Technological in Nature – Grounded in engineering, computer science, physical or biological sciences

3. Elimination of Uncertainty – Resolving technical uncertainty related to capability, method, or design

4. Process of Experimentation – Systematic testing, modeling, or trial-and-error

These standards apply across industries including technology, manufacturing, financial services, life sciences, energy, and food & beverage

DAC delivers a technology-driven, IRS-defensible study, not a superficial calculation.

Our engagement includes:

• Complimentary upfront credit assessment

• Identification and substantiation of Qualified Research Expenses

• Detailed interviews with technical and operational leadership

• Analysis of current and prior-year expenses

• Credit optimization using both ASC and traditional methods

• Preparation of a comprehensive methodology memorandum

• Delivery of a fully IRS audit-ready file

Our proprietary survey and allocation tools precisely map wages, contractor costs, cloud computing expenses, and supplies to qualifying activities—ensuring accuracy and defensibility

Our Process: Audit-Ready by Design

• Federal and state R&D credit optimization

• Payroll tax offset analysis for start-ups

• IRS audit defense support

• Shareholder and partner credit utilization planning

• Identification of incentives (energy, hiring, capital investment)

• Institutional-grade documentation and reporting

Value-Added Benefits

Why Dutch American Capital

DAC combines technical tax expertise with an investor’s understanding of enterprise value.

We approach tax credits not as a compliance exercise, but as strategic, non-dilutive capital that strengthens cash flow, enhances valuation, and supports long-term growth.

We Can Guide You Forward