- Machining Industry
R&D Tax Credits for Machine Shops
Machine shops push the boundaries of precision and efficiency every day. Your efforts to develop new processes, improve quality, and tackle challenging materials qualify for substantial tax credits.

Average Credit Value
$400K - $1.5M
Why Machine Shops Benefit
The machining industry's focus on precision and problem-solving creates extensive R&D tax credit opportunities
Process Innovation
Every new part requires problem-solving and process development, creating qualifying R&D activities.
Technical Documentation
CNC programs, setup sheets, and quality records provide excellent documentation for credit claims.
Continuous Improvement
Ongoing efforts to improve efficiency, quality, and capabilities generate consistent R&D opportunities.
Qualifying R&D Activities
Common machining industry activities that qualify for R&D tax credits
Advanced Manufacturing Processes
- Developing CNC programming for complex parts
- Creating multi-axis machining strategies
- Optimizing toolpath algorithms
- Implementing high-speed machining techniques
- Developing automated manufacturing cells
Tooling & Equipment Development
- Designing custom cutting tools and fixtures
- Developing specialized jigs and work-holding
- Creating tool wear monitoring systems
- Improving coolant and lubrication systems
- Developing predictive maintenance solutions
Material Processing
- Machining exotic and difficult materials
- Developing processes for new alloys
- Creating surface finishing techniques
- Optimizing heat treatment processes
- Developing precision grinding methods
Quality & Measurement
- Implementing in-process inspection systems
- Developing automated quality control
- Creating precision measurement techniques
- Implementing statistical process control
- Developing metrology solutions
This is not an exhaustive list. Many other machining R&D activities may qualify.
Success Stories
Real examples of machine shops benefiting from R&D tax credits
$750,000
Precision Machine Shop
Shop claimed credits for developing new 5-axis machining processes for aerospace components with tight tolerances.
$1.2 Million
Medical Device Manufacturer
Company received credits for creating specialized machining techniques for titanium implants and surgical instruments.
$925,000
Automotive Parts Supplier
Supplier claimed credits for developing high-speed machining processes and automated quality inspection systems.
Ready to Turn Your Machining Excellence Into Tax Savings?
Our specialized team understands the unique challenges machine shops face. Let us help you maximize your tax savings while you continue pushing the boundaries of precision manufacturing.