San Diego · R&D Tax Credit

R&D tax credits for San Diego startups.

San Diego's biotech and life-sciences companies often carry substantial qualifying R&D spend. Staxiom's team includes former Big 4 accountants.

What's included

R&D credit studies

Federal and California R&D credit studies for biotech, life-sciences, and tech work.

Documentation built in

Every study comes with the project and payroll documentation behind the claim.

Payroll tax offset guidance

Pre-revenue companies applying the credit against payroll tax instead of income tax.

Why this matters for a pre-revenue San Diego biotech

A clinical-stage company with years of R&D spend before any revenue can still benefit from the federal credit's payroll tax offset, up to $500,000 a year applied against payroll tax instead of income tax. California's own R&D credit, 15% of qualified research expenses over a base amount, doesn't have that offset, so it only helps once there's California income tax liability, worth planning around rather than assuming both credits land the same way.

For a quick number first, run the R&D tax credit calculator. Read the full breakdown on the R&D tax credit guide, or see how this looks for Los Angeles and Orange County startups.

San Diego R&D tax credit FAQ

Do San Diego biotech companies typically have large R&D tax credit claims?

Often yes, biotech and life-sciences R&D tends to involve significant qualifying wages plus contract research and lab costs, both of which can count toward the credit if the work meets the IRS's four-part test. The size of any specific claim still depends entirely on a company's actual qualifying spend, not its industry.

Can a pre-revenue San Diego biotech startup use the R&D credit before it has income tax to offset?

Yes, through the federal credit's payroll tax offset, up to $500,000 a year can apply against payroll tax instead of income tax, which is often the more useful path for a clinical-stage company with years of R&D spend before any revenue. California's own R&D credit doesn't have that payroll offset, so it only helps once there's state income tax liability.

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