Most businesses are unknowingly walking away from thousands—sometimes tens of thousands—of dollars in tax savings every year. Not because the opportunities aren’t there, but because no one’s taken the time to explain them clearly.
That’s why we launched two focused services: NuSpark HireCredit, which helps businesses claim the Work Opportunity Tax Credit, and NuSpark TaxSave, which identifies and supports claims for the Research and Development (R&D) Tax Credit.
Used separately, these tax credits can provide a helpful cash boost. Used together, they can drive a more complete and efficient tax strategy for companies hiring and innovating at the same time.
Here’s what they are, who qualifies, and why you might be missing out.
What Is the Work Opportunity Tax Credit (WOTC)?
The Work Opportunity Tax Credit (WOTC) is a federal program that provides a tax incentive to businesses that hire individuals from certain targeted groups. It’s designed to promote diversity in the workforce while easing the financial burden of hiring and onboarding.
Who qualifies for WOTC?
You might already be hiring eligible candidates without realizing it. The IRS defines a number of qualifying categories, including:
Veterans
Individuals receiving long-term unemployment benefits
People on SNAP (food stamps) or TANF (Temporary Assistance for Needy Families)
Ex-felons
Residents of Empowerment Zones or Rural Renewal Counties
Vocational rehab referrals
How much is the credit worth?
The amount varies based on the category and hours worked, but it typically ranges from $1,200 to $9,600 per eligible employee. The more you hire from these categories — and the longer they stay — the more value you can capture.
Why it’s underused:
The process to claim WOTC includes a time-sensitive certification step, and it requires documentation that many employers skip. That’s where NuSpark HireCredit comes in — we take care of that process so you don’t miss out.
What Is the Research and Development (R&D) Tax Credit?
The Research and Development Tax Credit is a federal incentive that rewards companies for investing in innovation. Contrary to popular belief, this credit isn’t limited to scientific labs or Fortune 500 companies.
Who qualifies for the R&D credit?
If your business is:
Creating or improving products or processes
Developing or enhancing software
Solving technical problems
Building internal tools or platforms
Testing or prototyping new systems
…you may be eligible.
How much is it worth?
The R&D credit is based on your qualified research expenses (QREs) — including employee wages, contractor costs, and supplies used during eligible projects. The total credit often equals 6% to 14% of those qualified costs, depending on how it’s calculated.
Even better: If you’re a startup or in growth mode and not yet profitable, the credit can be applied to your payroll taxes—up to $500,000 per year.
Why it’s underused:
Many companies don’t think they do “research and development” in the traditional sense, and assume they’re not eligible. In reality, if your team is solving problems and creating improvements, you’re likely already doing the work — you just need to capture and document it correctly.
Why Combining These Credits Makes Strategic Sense
Individually, both credits offer value. But when used together, they can support different parts of your business and help stretch your investments even further.
Hiring + Innovation = Bigger ROI
If you’re bringing in new team members and developing your business simultaneously, there’s no reason not to stack both benefits.No overlap, no conflict
WOTC and R&D credits are based on different qualifying activities. You can claim both without interference or risk.Better use of cash
These credits help reduce your federal tax liability — or offset payroll taxes — giving you more flexibility to reinvest in people, tools, or growth.
For example, a software firm hiring junior developers from qualifying WOTC categories and building internal platforms could claim credits for both. A manufacturer hiring new production staff while upgrading process automation systems could do the same. The industries may be different, but the opportunity is the same: reward for growth-minded action.
Common Misconceptions That Cost Businesses Money
Too many businesses disqualify themselves from these credits based on outdated assumptions. Let’s clear a few up:
“We’re too small.”
Small businesses, especially startups, often stand to gain the most from these credits — especially when offsetting payroll taxes.“We already have a CPA handling our taxes.”
Most CPAs are generalists. WOTC and R&D credits are specialized, time-sensitive, and documentation-heavy. Our services work alongside your CPA — not in place of them.“We don’t have a lab or do scientific R&D.”
That’s fine. The R&D credit applies to practical innovation, not just lab work. If you’re solving problems, building tools, or streamlining workflows, you’re likely eligible.“It’s not worth the hassle.”
We’ve built NuSpark HireCredit and TaxSave specifically to make this process low effort and high return. Our systems are designed to take the load off your team and get results without creating more work.
Final Thoughts
These tax credits aren’t loopholes or limited-time gimmicks — they’re long-standing, IRS-approved incentives meant to reward smart business practices. But unless you have a dedicated strategy to pursue them, chances are they’re slipping past you.
With NuSpark’s HireCredit and TaxSave services, you can finally take advantage of what you’ve earned — by doing the work you’re already doing.
Want to find out how much you might be eligible for? Let’s have a quick conversation. No hard pitch — just real numbers and real guidance.