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Historically viewed as a technologically insulated and quiet field, there are many new systems and devices that are transforming the industry. Anyone responsible for modern logistics systems will be aware of innovative analytical software programs, RFID tracking systems, robotic automation, and security systems, all of which are increasingly demanded by clients. These systems are capable of increasing performance and lowering costs, ideal conditions for the R&D Credit.

Several improvements have reliably been taken:

  • Tracking Systems

    There are a host of inventory tracking strategies, often relying on RFID stickers and strategically placed sensors. As more companies invest in these systems, there are inevitably integration issues and product nuances that have to be solved.

  • Software Developments

    There are thousands of tracking systems in the world, and thousands of new applications developed for them. Software development is a very likely candidate for the credit in this industry.

  • Automation

    Building and modifying automation to fit an industry or facility is a very likely candidate for the R&D Credit.

  • Predictive Analytics

    Analyzing patterns and statistics has been an area of major development in the R&D Credit.

Case Study

Purchased Systems

Purchasing Systems: Purchasing systems and software from other companies is a good way to increase capabilities, but it is challenging for the credit. In this case, the credit was limited to the new features and integration equipment developed specifically for Distributor Co.


Transportation and distribution companies are central to the efficient operation of business. These companies also happen to quite simple in concept, but are themselves home to a very unique type of research. Distributor Co. is an example of this, which focuses on the transportation of wood products and other construction supplies. These supplies were extremely heavy, and required a very specific robotic handling system, one more powerful than generally available, but as simple and safe as possible. Distributor Co. began to design and integrate a robotic system to handle massive amounts of product, earning a respectable credit.

Credit Estimator

Credit Estimator


This is an estimation only and should not be used on your taxes.  All conclusions involved in this calculation are based on the accuracy of the information provided by the end user.  This calculation utilizes historic information and statistical analysis to determine an industry average combined with a mathematically derived constant for the calculation of State and Federal Benefits.  InnovaTAX cannot and will not warranty the results of this estimation and any party using the estimated figure in place of a genuine calculation does so at its own harm and with full warning from EEPB InnovaTAX that such action is improper.  Further, the estimator developed by InnovaTAX is the intellectual property of InnovaTAX and cannot be used in any other manner than on this website or by InnovaTAX employees.  Due to the fact that the information contained within the calculator is based on industry averages, the results will vary from situation to situation and might be above or below the stated figure.  Consult your tax advisor or EEPB InnovaTAX for further information.

* Industry Averages are historical IRS averages, representative of actual results compiled by the IRS (based industry NAICS code.)  Estimates of QREs and credits are approximations, and actual results will vary based on actual client costs and qualifications.

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Houston, Texas 77092
Phone: 713-622-0016

2950 North Loop West Suite 1200 • Houston, Texas 77092 • Phone: 713.622.0016

EEPB InnovaTax, LLC is a State of Texas registered tax adviser located in Houston, TX.

EEPB InnovaTax specializes in Research and Development income tax consultation; Tax advisory services; Tax and taxation planning advice, information and consultancy services; and Tax consultation.

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