Molding Opportunities: R&D Tax Credits in the Plastic Industry
The plastic industry, a dynamic and evolving sector, is constantly pushing the boundaries of material science, manufacturing processes and product design. A significant driver of this innovation is the research and development (R&D) tax credit, a federal and state incentive designed to stimulate technical design and product development.
The Role of R&D in the Plastic Industry
R&D plays a pivotal role in the plastic industry, driving advancements in material science, manufacturing processes and product design. According to data from the National Center for Science and Engineering Statistics, companies manufacturing plastics and rubber products spent approximately $310 million on R&D capital expenditures in 2020. This investment fuels the development of new products, processes and inventions, keeping the U.S. at the forefront of innovation.
A Hidden but Immediate Source of Cash
The IRS has a broad definition of what constitutes R&D, and many activities in the plastic industry qualify for the tax credit. These include:
- Designing and developing new or improved molds
- Developing new or improved injection systems
- Designing, constructing and testing of prototype molds
- Designing new compounds or formulations
- Developing new applications for existing compounds
- Developing new testing methods and protocols
- Implementing automation processes or robotics
- Innovative product development using computer-aided design tools
- Designing innovative manufacturing equipment
- Integrating new materials to improve product performance and manufacturing processes
- Designing and evaluating process alternatives
- Streamlining manufacturing processes through automation
- Increasing manufacturing capabilities and production capacities
Innovation in Plastic Manufacturing
Innovation has become a priority to plastic manufacturing agents. Major fields of innovative efforts include 3D printing, automation of manufacturing, innovative applications, bioplastics and recycling. Companies investing in any of these areas may be entitled to significant R&D tax incentives.
Getting an R&D Tax Credit Analysis to see if you qualify is the first step!
eBook: The Architect's Guide to R&D Tax Credits
This comprehensive e-book is designed to help you recognize which of your activities qualify for R&D tax credits!
Webinars: R&D Tax Credits
Testimonials: Our valued clients
Case Studies R&D Tax Credit
R&D Tax Credit Case Study for Specialty Manufacturer in Oregon
1 Year Tax Savings: $18,078 (Federal Only) Study Highlights Wages $525,358 Supplies $26,953 Rental or lease of computers 27.5-Year Contract Research $11,760 Total Qualified …
R&D Tax Credit Case Study For Specialty Manufacturer in New York
1 Year Tax Savings: $18,078 (Federal Only) Study Highlights Wages $358,407 Supplies $26,953 Rental or lease of computers 27.5-Year Contract Research $14,227 Total Qualified Research …
R&D Tax Credit Case Study for Software Developer in Texas
1 Year Tax Savings: $72,430 (Federal Only) Study Highlights Wages $1,342,919 Supplies $0 Rental or lease of computers $0 Contract Research $0 Total Qualified Research …
Top Articles: R&D Tax Credit
What You Need to Know About IRS Notice 2023-63
The Highlights Why It Matters While this notice doesn't overhaul the R&D tax credit system, it does provides valuable clarification for companies engaged in research …
Leveraging R&D Tax Credits to Propel Health Care Innovation
Innovation is vital for advancing health care and improving patient outcomes. One way the government supports innovation in the health care industry is through research …
How to Calculate Research and Development Tax Credits
Calculating research and development (R&D) tax credits can be complicated, but the financial payoff makes it worthwhile for innovative companies. In this comprehensive guide, we’ll …