Failing the R&D tax credit risk test doesn't automatically wipe out a project, as long as the firm kept its rights in the research.
David Wiener explains that the research is treated as funded only to the extent of the payments the firm is entitled to. In his round-number illustration, a project's qualified research costs come to $300,000, the client pays $200,000 regardless of results, and the $100,000 the firm ate can still be part of the credit.
From The Tax Strategy Playbook.
Full episode: https://taxstrategyplaybook.com
No-cost analysis through CSSI: https://calendly.com/david-wiener/cs or 770-224-8504, option two
This is educational content, not tax advice for your situation. Talk to your tax professional.