The R&D Tax Credit is explored. Who qualifies for this credit? How is it calculated? Sample benefits are illustrated. The methodology is discussed: court cases that have changed in approach, audit triggers and IRS Franchise Tax Board Positions. The R&D Tax Cridit is available to firms engaged in creating new or vastly improved products, processes, and technologies in the U.S. The rules and regulations changed in the early 2000s to provide incentives to small and mid-sized firms. The credit is a Federal one.