WA Business R&D Funding
An interactive guide to competitive grants and tax incentives for research & development in Washington state.
Understanding R&D Funding: Competitive vs. Entitlement
Funding for R&D in Washington primarily comes from two sources:
- Competitive Grants: These are programs where businesses apply and are selected based on the merit of their proposal. This is the most common source of direct R&D grant funding.
- Tax Incentives/Credits: These function like "entitlement" programs. If your business meets the criteria (e.g., spending on qualified R&D), you are entitled to the tax benefit.
Note: While Washington state previously offered a specific R&D tax credit, it has expired. However, businesses can still make full use of the powerful Federal R&D Tax Credit and other state-level tax incentives for specific industries.
Small Business Innovation Research (SBIR)
A highly competitive federal program that encourages small businesses to engage in R&D with the potential for commercialization. Often called "America's Seed Fund."
Agency: U.S. Small Business Admin. (SBA)
Learn More →Small Business Technology Transfer (STTR)
Similar to SBIR, but requires the small business to formally collaborate with a non-profit research institution (like a university in Washington).
Agency: U.S. Small Business Admin. (SBA)
Learn More →Evergreen Manufacturing Growth Grants
State grants designed to increase the number of manufacturing and R&D jobs. Supports businesses and innovation clusters in key sectors like aerospace, clean tech, and advanced manufacturing.
Agency: WA Dept. of Commerce
Check Program Status →Clean Energy (RD&D) Grants
Funding for strategic research, development, and demonstration of new and emerging clean energy technologies to help meet state climate goals.
Agency: WA Dept. of Commerce
Learn More →WRF Technology Commercialization Grants
Funds projects at Washington-based non-profit research institutions to help advance breakthrough technologies from the lab to commercial application.
Agency: Washington Research Foundation
Learn More →Federal R&D Tax Credit
A powerful, dollar-for-dollar tax credit for businesses of all sizes that invest in qualified research and development activities. This is the primary R&D "entitlement" program available.
Agency: U.S. Internal Revenue Service (IRS)
Learn More →Aerospace Industry Incentives
Washington provides specific B&O tax credits and sales/use tax exemptions for manufacturers and processors involved in aerospace product development, R&D, and tooling.
Agency: WA Dept. of Revenue
Learn More →High Technology Sales/Use Tax Deferral
Deferral or exemption of state and local sales/use tax on the construction of R&D facilities and purchases of qualified machinery and equipment for high-tech industries.
Agency: WA Dept. of Revenue
Learn More →State Trade Expansion Program (STEP)
Provides grants to small businesses to help them enter or expand in international markets. This can be used to market and export products developed through R&D.
Agency: WA Dept. of Commerce
Learn More →Who We Are:
Swanson Reed is one of the largest Specialist R&D Tax Credit advisory firm in the United States. With offices nationwide, we are one of the only firms globally to exclusively provide R&D Tax Credit consulting services to our clients. We have been exclusively providing R&D Tax Credit claim preparation and audit compliance solutions for over 30 years.
Swanson Reed’s Washington office provides R&D tax credit consulting and advisory services to Seattle, Spokane, Tacoma, Vancouver, Bellevue, Kent, Everett, Renton, Federal Way and Yakima.
Swanson Reed hosts daily free webinars and provides free IRS CE and CPE credits for CPAs. For more information please click here or contact your usual Swanson Reed representative.
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What is the R&D Tax Credit?
The Research & Experimentation Tax Credit (or R&D Tax Credit), is a general business tax credit under Internal Revenue Code section 41 for companies that incur research and development (R&D) costs in the United States. The credits are a tax incentive for performing qualified research in the United States, resulting in a credit to a tax return. For the first three years of R&D claims, 6% of the total qualified research expenses (QRE) form the gross credit. In the 4th year of claims and beyond, a base amount is calculated, and an adjusted expense line is multiplied times 14%. Click here to learn more.
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R&D Tax Credit Preparation Services
Swanson Reed is one of the only companies in the United States to exclusively focus on R&D tax credit preparation. Swanson Reed provides state and federal R&D tax credit preparation and audit services to all 50 states.
If you have any questions or need further assistance, please call or email our CEO, Damian Smyth on (800) 986-4725. Feel free to book a quick teleconference with one of our national R&D tax credit specialists at a time that is convenient for you.
R&D Tax Credit Audit Advisory Services
creditARMOR is a sophisticated R&D tax credit insurance and AI-driven risk management platform. It mitigates audit exposure by covering defense expenses, including CPA, tax attorney, and specialist consultant fees—delivering robust, compliant support for R&D credit claims. Click here for more information about R&D tax credit management and implementation.
Our Fees
Swanson Reed offers R&D tax credit preparation and audit services at our hourly rates of between $195 – $395 per hour. We are also able offer fixed fees and success fees in special circumstances. Learn more at https://www.swansonreed.com/about-us/research-tax-credit-consulting/our-fees/
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