SPRX CEO Dominic Vitucci is misleading potential clients again with his fuzzy math. He recently claimed “AI transformations qualify for the R&D tax credit” — even suggesting a $10M payroll overhaul could mean a $1M tax break. Catchy line. Misleading math.
Here’s the fine print:
- Not all AI projects qualify. The credit only applies to activities meeting the IRS’s four-part test for “qualified research.” Buying vendor tools or training staff? Usually excluded. Internal-use software? Excluded too, unless it clears narrow exceptions.
- It’s about the work, not the title. Wages count only if employees perform qualified R&D: design, testing, documentation, etc. Engineers fit naturally. Ops staff only qualify if they’re truly doing R&D—not just rolling out tools or sitting in training.
- The “20%” headline is a mirage. The statutory rate applies only above a base amount (often half of expenses). In practice, the benefit is much lower. A flat “15–20% offset” on payroll? That’s spin, not tax law.
Flashy claims don’t shrink your tax bill. Skipping the fine print just leaves your company exposed. If these are the kind of claims Dominic is making in public when he knows they can be easily shot down, what type of claims is his AI making for his claims when they file for tax credits at the IRS?
Get real advice—and real numbers. If something sounds too good to be true, it probably is.
###