Research and Development Tax Credits for Manufacturing Companies

Introduction

The R&D tax credit can be a valuable source of capital for manufacturing companies. 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 medical devices to aerospace can benefit from 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.

What is the R&D Tax Credit?

The R&D Tax Credit is a federal business tax credit under IRS section 41. Over 30 states offer a separate state credit. This is a labor-based credit that is mainly generated by the wages you pay your W2 employees, and fees paid to subcontractors (must be located in the US).

Additionally, a portion of your costs of supplies and prototypes can be captured to generate more credits. This is a great benefit to manufacturing companies.

Examples of Qualified Activities
  • Developing new products/materials, and or improving
    products/materials
  • Design/development of tooling and equipment
  • Evaluating and improving the flow of materials
  • Designing, constructing, and testing product
    prototypes
  • Performing alternative material testing
  • Increasing manufacturing capabilities and production
    capacities
  • Improving product quality, and optimizing
    manufacturing processes
About HighPeak Advisors

HighPeak Advisors is a national, full-service tax credit firm that specializes in helping innovative companies claim federal and state R&D tax credits. Our clients are located across the United States, and range from 3-person startups to 500-person corporations.

We’ve developed thorough, transparent, and painless processes to maximize our clients benefits, while minimizing their time investment. Our in-depth study reports back up the credits we find you, but we also provide audit defense to all of our clients, for no additional fee.

See if you qualify

Schedule a complimentary analysis today, and our team of experts will determine your eligibility for the R&D tax credit.

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