NEORAMAKE PEOPLE BETTER

R&D TAX CREDIT + AI

Neora already does real R&D. COB + AI expand what gets captured.

PurposeA living QRE ledger next to a live estimator, so the credit gets claimed cleanly, not reconstructed at year-end.Do nextToggle the AI uplift. Watch the credit move. Send the trail to the tax team.

QRE (base)$8.8M

AI uplift$2.14M

Illustrative credit$1.09M

Categories3

MethodASC (14% or 6%)

QRE allocation · by category

Segments include the AI-development uplift most companies leave on the table.

FormulationSoftware & AIProcess

42%

44%

15%

Product formulation$4.52M

Software & AI development$4.74M

Process improvement$1.63M

Illustrative federal R&D credit · estimate

$1.09M

on $10.89M of qualifying research expense

Basis: demo QRE across formulation, software/AI, and process improvement categories, at an illustrative 10% simplified ASC-style rate. Actual credit depends on the base-period calculation, wage/supply/contractor allocation, and Section 174 amortization, Neora's tax team owns the filing.

Composition

Baseline qualifying R&D$8.75M

AI-development uplift$2.14M

Include AI-development uplift ($2.14M QRE)

Self-calculating estimator · ASC method

LIVE · UPDATES AS YOU TYPE

US technical W-2 wages on R&D

Engineers, scientists, R&D managers, qualifying portion of taxable wages.

Contractor R&D spend

Capped at 65% of the amount paid under §41.

R&D supplies

Non-depreciable supplies consumed in R&D.

AI / software development spendAI / SOFTWARE

Model dev, tooling, novel data architecture, the category traditionally under-captured.

Prior 3-yr avg QRE (base)

Enter 0 if no base period, the estimator drops to the 6% start-up rate.

Apply 14% ASC rate (uncheck to see 6% start-up rate)

Illustrative federal R&D credit

$539,350

on $4.80M of current-year qualifying research expense

Wages · $2.80M

Contractors × 65% · $422,500

Supplies · $180,000

AI / software · $1.40M

Formula: 14% × (current QRE − 50% of prior 3-yr avg)

Illustrative estimate only, confirm with your tax advisor. ASC method per IRC §41(c)(5). Section 174 amortization treated separately.

Software & AI development · activities

Mapped to the IRS four-part test: permitted purpose · technical uncertainty · process of experimentation · technological in nature.

Intelli-SKIN AI skin analysis model

Vision model development, dataset curation, on-device performance.

Qualifies

COB Field Command Center (this system)

New internal AI-driven operating console; novel data + rules architecture.

Qualifies

Compliance Sentinel classifier

Rule + ML hybrid for income-claim detection; ongoing training loop.

Qualifies

Growth Group generation engine

AI-generated cohort content with never-repeat constraint.

Qualifies

Field CRM UI theme refresh

Cosmetic front-end change with no technical uncertainty.

Excluded

Continuous documentation trail

TODAYIntelli-SKIN model retrain, 4 engineers × 6 hrs logged with hypothesis + result.

YESTERDAYNeo-Filler stability iteration #12, bench notes auto-captured from lab notebook.

3D AGOCOB Sentinel classifier v2.1, training set expanded, evaluation delta documented.

1W AGOAPAC allocation model, technical uncertainty resolved, decision recorded.

2W AGOACN integration bridge, engineering hours + contractor spend tagged to project.

COB observes engineering activity, tags qualifying work, and produces the contemporaneous documentation the IRS expects, the piece that traditionally gets reconstructed at year-end.

Honest framing: Neora's existing tax team owns the credit filing, base-period math, and Section 174 posture. COB + AI is a capture-and-documentation layer, especially valuable for AI/software work, which is typically the most under-documented and most audited category.

ILLUSTRATIVE DEMO ESTIMATE · NOT TAX ADVICE · ACTUAL CREDIT SUBJECT TO NEORA'S TAX COUNSEL AND IRS DETERMINATION