Audio/visual (A/V) companies are some of the most innovative businesses in today’s market, yet many fail to take advantage of the R&D tax credit; a powerful, IRS-compliant way to boost cash flow. This blog breaks down why A/V firms often miss the credit, what activities actually qualify, and how to claim it securely and effectively.
Entertainment technology and audio/visual integration are industries built on constant problem-solving, engineering, and creative design. Whether it’s developing a new sound system for a concert hall, integrating video walls into a stadium, or prototyping an immersive experience, A/V firms push the boundaries of what technology can do.
Yet despite this innovation, many A/V companies never claim the R&D tax credit. Some believe it only applies to “lab coat” research, while others assume their work doesn’t fit the IRS definition of R&D. The reality? Much of what these firms do every day does qualify, and leaving the credit on the table means missing significant cash flow opportunities.
There are a few common reasons A/V and entertainment tech firms overlook this credit:
Many assume that only high-tech software companies or biotech firms qualify. In reality, any business solving technical challenges, prototyping, or improving processes may be eligible, including A/V integrators and equipment manufacturers.
A/V firms often design customized solutions for unique client environments—acoustics, lighting, video distribution, or system reliability. These engineering efforts are frequently R&D-qualifying activities, yet many firms don’t track or claim them.
Some companies fear that they can’t prove their work meets IRS standards. Without clear records of experimentation or testing, they don’t pursue the credit.
Not all CPAs are deeply familiar with the R&D tax credit, especially as it applies to niche industries like entertainment technology. A/V firms relying solely on traditional accounting may never have the conversation.
To clarify, the IRS doesn’t require groundbreaking inventions. It focuses on work that seeks to eliminate technical uncertainty and involves a process of experimentation. For A/V companies, that could include:
Chances are, if your firm is building, testing, or iterating solutions, you’re doing R&D, even if you didn’t call it that.
For many A/V firms, the R&D tax credit can mean tens or even hundreds of thousands of dollars in savings. These credits can:
Failing to claim the credit doesn’t just leave money on the table, it puts firms at a competitive disadvantage against those that leverage every available resource.
The key is to maximize your claim without triggering unnecessary risk. That means:
At B10 Capital, we’ve seen how easy it is for partners in the entertainment tech space to undervalue their own innovation. Our role is to ensure claims are fully optimized, completely compliant, and defensible in the event of an audit.
The entertainment tech and A/V industry thrives on creativity and technical expertise. But too often, that same innovation is overlooked when it comes to claiming financial benefits. By understanding what qualifies and working with the right advisors, A/V firms can capture the R&D tax credit, turning technical achievements into tangible cash flow.
If you’re an A/V company (or work with one) and aren’t sure whether your projects qualify, now is the time to act.
Contact B10 Capital today to review your opportunities for the R&D tax credit. Together, we’ll ensure your innovation translates into secure, IRS-compliant savings.
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