Businesses can use the dollar-for-dollar credits to reinvest in the products and processes that turn a profit.
As the third-largest manufacturer in the world, the United States manufacturing industry employs over 12 million people. Companies in this field face a competitive market and are constantly innovating ways to manufacture more efficiently and save money. This can include automating computer and electronic processes, eliminating waste, reusing waste material, creating new formulas and more.
The federally-sponsored Research and Development tax credit gives manufacturing businesses an opportunity to explore new ways to improve their daily activities with both Qualified Research Expenses (QREs) and Qualified Research Activities (QRAs).
Some Manufacturing Activities that qualify for R&D:
- Hiring technicians, engineers, chemists, and analysts
- Developing energy-efficient processes
- Researching new ways to reduce waste
- Testing ways to extend product preservation
- Developing more efficient travel processes
- Innovating new fabric combinations for comfort
- Prototyping, designing and developing models
Manufacturing companies must continue their research and development efforts to keep up with the rest of the market. By enhancing innovation, they not only become leaders in the field, but they also get handsomely rewarded with Research and Development tax credits.
Why Choose National Tax Group?
National Tax Group is here to help you claim all of the incentives your business qualifies for. Our tax experts can help you determine if your business activities meet the necessary criteria of the test by conducting a free initial assessment.