Manufacturing businesses frequently overlook their eligibility for government tax incentive programs or mistakenly assume that such programs are not applicable to mass production companies. Even those who are aware of these programs often fail to fully claim the tax credits they rightfully deserve.
Many taxpayers mistakenly believe that only licensed engineers and scientists involved in developing groundbreaking patented products or processes qualify for the R&D tax credit under the U.S. tax code. While patents can greatly support qualification for the credit, they are not a mandatory requirement. Furthermore, employees and expenses beyond traditional engineers and laboratory scientists may also qualify for the R&D tax credit.
There are several federal tax incentives that could benefit your business by saving you cash and providing refund opportunities. If any of these credits appear relevant to your business, let KC&A assist you in claiming the credits you rightfully deserve!
Manufacturing companies have the potential to qualify for R&D tax credits by engaging in qualified research activities. Some examples of activities that may be eligible for R&D tax credits include:
- Performing technical research and developing second-generation product advancements
- Developing new and improved products, designs, equipment, and manufacturing processes
- Developing prototypes and enhancing tooling methodologies
- Creating sustainable products and processes (alternative energy integration, substitute materials refinement)
- Developing robotic and automated processes with high precision and vision capabilities
- Improving mechanical and software systems for increased manufacturing automation output and consistency
- Designing and evaluating alternative cost-effective and performance-enhancing processes
- Designing methods for product recovery and reuse
- Designing efficient batch processing using predictive models
- Designing processes to reduce waste, promote energy conservation, and lower carbon emissionsImproving material management and classification systems
- Designing manufacturing protocols to comply with safety and governmental regulations
- Integrating new machinery, robotics, and software management systems into production lines
- Evaluating and validating experimental prototypes, manufacturing processes, and design requirements
Contact KC&A today for your free R&D tax credit assessment and evaluation
