R&D Tax Credit for Manufacturers
Manufacturers often do not realize that they are eligible for the Research and Development tax credit. The R&D tax credit allows companies to realize tax savings, increase cash flow and stay competitive in the marketplace. Many of the qualifying activities are considered day-to-day operations for these companies. Manufacturers who develop new or improved products or processes qualify for this incentive.
The benefits can be significant and are efficient to realize through our services. The Research Tax Credit can provide a hidden but immediate source of cash for manufacturers from prior years, plus a significant reduction to current and future years’ federal and state tax liabilities.
Typical Qualifying Research and Development Tax Credit Activities:
- Product development using computer aided designing
- Prototyping and 3D modeling
- Designing manufacturing equipment
- Alternative material testing
- Improve manufacturing and production
- Developing new or improved products or processes
- Developing tooling and assembly design solutions
- Designing and developing cost-effective business activities or tasks
- Value engineering
- Improve product performance and manufacturing practices
- Evaluate material or substance flows
- Designing and evaluating process alternatives
- Product design processes – prototype design, development, and testing
Our R&D Tax Credit practice consists of engineers, CPAs, and attorneys who have extensive experience conducting R&D Tax Credit Studies at both the federal and state level. Our process begins with a free assessment to ensure that the company qualifies for the credit and would be able to utilize them. Each of our studies includes a site visit to help facilitate the study process. We also include audit support with all of our studies. This is a conservative federal and state incentive that was just made permanent by Congress as part of the 2015 PATH Act. Contact ETS for more information at 800-236-6519 or email here.