Posted by Jeffrey Feingold on 11.07.24

Does your manufacturing business resolve technological challenges through the innovative use of products and processes? De­spite its name, the research and development (R&D) tax credit program includes far more activities than research, patents and laboratory work in high-tech, medical and scientific industries.

Many manufacturers do not realize the R&D tax credit extends beyond basic research to include applied research. The R&D credit is intended for manufacturers who improve the manufacturing process by making it more advanced, efficient and environmentally friendly. The credit is also intended for activities related to process design and development.

Read Our Free Guide: The Manufacturer’s Guide to R&D Tax Credits

Think in terms of new techniques, formulas, processes, software, testing out new building materials, and the design of any new projects, such as those involving mechanical and electrical systems. Do you use innovative materials to create more reliable, energy-efficient products or processes?

Listed are examples of the types of manufacturing activities and innovation projects most likely to contain qualified research.

• 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
• Designing and developing cost-effective operational processes
• Alternative material testing
• 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
• Achieving compliance with changing emission regulations

Find Out if Your Activities Qualify

The R&D tax credit can be a lucrative incentive for innovative businesses. Given the new permanent nature of the tax credit, now is the time to consider whether activities performed by your company qualify for major cash-saving tax credit opportunities.

Request a free assessment to determine qualifying R&D tax credit eligibility.

Tax Point Advisors, a firm with expertise in working with small and midsize companies, works with businesses that may qualify for R&D tax benefits. For more information, read our e-book:  The Manufacturer’s Guide to R&D Tax Credits. For more information, call us at (800) 260-4138, or please leave us a message below.