Key differences
- They price differently, so compare the effective annual cost for your numbers in the calculator.
Side by side
| SBIR/STTR Phase II | R&D tax credit | |
|---|---|---|
| Product | US federal R&D grant | Payroll tax offset |
| Funding type | Grants & tax credits | Grants & tax credits |
| Estimated rate as of today | No cost — non-repayable | No cost — non-repayable |
| Pricing source | Estimated as of today | Estimated as of today |
| Time to cash | About 6 months | About 6 months |
| Typical size | Up to $2M | Up to $500K |
| Term | — | — |
| Requirements | Usually requires a Phase I award | Needs qualifying R&D spend |
| Regions | US | US |
| What they underwrite | Your R&D proposal | Your R&D proposal |
| Collateral | None | None |
| How you repay | Never (grant) | Never (grant) |
| Dilution | None | None |
R&D tax credit
Startups under $5M receipts can offset up to $500K/yr of payroll tax.
SBIR/STTR Phase II vs R&D tax credit FAQ
What is the difference between SBIR/STTR Phase II and R&D tax credit?
They price differently, so compare the effective annual cost for your numbers in the calculator.
Which is cheaper for you?
The answer depends on your amount, term and revenue. The calculator prices both on the same basis — fees, warrants and dilution included.
Related comparisons
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