Manufacturing companies often miss out on claiming R&D credits simply because they don’t recognize their work as being innovative, but rather routine. R&D credits are available for manufacturers who are taking steps to improve the manufacturing process by making it more advanced, environmentally friendly, and efficient. Companies performing activities such as process design and development also qualify for R&D. Due to the complexity of the industry, companies that have claimed R&D often leave some credit unclaimed, or aren’t reaping the maximum of earned benefits.
Eligible manufacturing innovations include
- Developing products using computer-aided design tools
- Developing or improving second-generation products
- Design and development of tooling and equipment
- Developing unique computer numerical control programs
- Designing programmable logic controllers
- Designing innovative manufacturing equipment
- Prototyping and three-dimensional solid modeling
- Designing cellular manufacturing processes
Eligible production process innovations include
- Performing alternative material testing
- Designing and evaluating alternative processes
- Innovative steps to reduce manufacturing time processes
- Streamlining manufacturing processes through automation
- Improving operating and economic efficiencies
- Designing, constructing, and testing new and existing product prototypes
National Tax Group will examine your company’s processes to determine if it qualifies for the R&D tax credit.
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Learn if you qualify for the R&D tax credit.