Research and Development Tax Credits for Manufacturing Companies

The R&D tax credit can be a valuable source of support for companies that participate in manufacturing. Unfortunately, many are unaware of the incentives or have misconceptions on what makes a company eligible, and miss out on the tax credits they deserve.

All manufacturing companies from firearms to aerospace should pursue R&D tax credits. There are a wide variety of manufacturing activities and production processes that are eligible, which can result in a significant tax credit.

Qualifying research expenditures include:

  • Wages of individuals performing, supervising, or assisting r&d activities
  • Cost of materials consumed in the development of prototypes and new products
  • 65% of payments to outside consultants
  • Partnership earnings
  • Schedule C profits

Examples of qualifying activities:

  • Innovating product development using computer aided design tools
  • Developing second-generation or improved products
  • Tooling and equipment fixture design and development
  • Designing innovative manufacturing equipment
  • Prototyping and three-dimensional solid modeling
  • Evaluating and determining the most efficient flow of material
  • Designing, constructing, and testing product prototypes
  • Performing alternative material testing
  • Increasing manufacturing capabilities and production capacities
  • Improving product quality and/or manufacturing processes

See if you qualify – schedule your free assessment

Our assessment costs you nothing, other than 30 minutes of your time. We will explain how the credit works, gather some information and give you estimates on what your estimated credits are as well as our recommendations.

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