Some tax pros reference “cheese” when explaining what qualifies for the R&D tax credit.

The “Cheese Example” has become an obscure tax urban legend. There is no tangible proof that the IRS actually referenced cheese as an example. But it does a nice job of explaining how the IRS regulations define qualified research.

Here’s the story.

A food manufacturer wants to create a fine-shredded version of its cheese. The thinner blade doesn’t exist commercially, so the team tests different materials, refines the design, and eventually finds one that works.

The result? R&D-qualified activity.

Because the company wasn’t following a manual, it was solving an unknown.

Why the Cheese Example Sticks

The point isn’t the cheese. R&D credits and the qualifying activities are notoriously confusing and tricky.

If developing a finer-shredded cheese qualifies, so might your process improvements, system upgrades, or product variations.

But most companies (and their advisors) overcomplicate the rules and overlook everyday innovation hiding in plain sight.

What SPRX Sees That Others Miss

At SPRX, our technology reviews every documented project, W-2, receipt, and more, to uncover qualified research hiding in plain sight. Traditional studies often miss this because there’s just too much data to make sense of.

SPRX’s AI is paired with human oversight, tax expertise, and data intelligence to surface opportunities others overlook.

That means:

• Study times reduced from 270 to 28 days

• 30–50% lower cost

• Up to 20% more qualified credits identified

Because innovation doesn’t always happen in a lab. Sometimes, it’s just a better way to shred cheese.

Find Your Cheese

The “Cheese Example” reminds us that qualified research often hides in practical improvements, small or large.

SPRX helps you find your credits, pain-free and audit-ready.

Get in touch with our team to learn how SPRX can deliver an R&D credit analysis that’s ready to file in less than a month.