R&D Tax Credits for Manufacturers

Tax Point Advisors’ National Experts bring a Local Touch to clients in the manufacturing industry, uncovering optimal tax incentives. 

Research and development is a critical driver of economic growth, and the manufacturing industry is a key factor in developing and applying new technologies that keep U.S. businesses competitive in the global marketplace.

Now that the federal R&D tax credit has been made permanent, the R&D tax credit has never been more available to manufacturers; it can save manufacturing companies of all sizes hundreds of thousands of dollars a year. Further, most states offer state R&D tax credits that can significantly reduce a manufacturer’s state income tax burden.

While expenditures of manufacturing R&D are generally categorized as capital expenses, manufacturers can claim the R&D tax credit for certain qualified activities. These activities include far more than patent development—many activities that improve or modify an existing product or process qualify.

Click here to see if your manufacturing activities qualify for R&D tax credits.

Typical Qualifying R&D Credit Activities for Manufacturers

  • Improving product quality
  • Development of second generation or improved products
  • Product development using computer aided design tools
  • Tooling and equipment fixture design and development
  • Optimizing manufacturing processes
  • Designing manufacturing equipment
  • Prototyping and three-dimensional modeling
  • Alternative material testing
  • Designing and developing cost-effective operational processes
  • Integrating new materials to improve product performance and manufacturing processes
  • Designing and evaluating process alternatives
  • Evaluating and determining the most efficient flow of material
  • Designing, constructing, and testing product prototypes
  • Increasing manufacturing capabilities and production capacities

Any manufacturing activity must meet the four-part test to qualify for the R&D tax credit.

To learn more about Tax Point Advisors’ R&D tax credit services for manufacturers, simply fill out the form on this page and a member of our team will be in touch with you. Or, you may call us at (800) 260-4138 nationwide.


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