Manufacturing R&D Tax Credits Playbook
Your comprehensive guide to identifying, documenting, and claiming valuable R&D tax credits for your manufacturing business.
Manufacturers Are Missing Out on Millions in R&D Credits
Many manufacturing companies don't realize their process improvements, product development, and engineering activities qualify for valuable R&D tax credits.
What Are R&D Tax Credits?
The Research & Development (R&D) Tax Credit is a dollar-for-dollar tax incentive for companies that develop new or improved products, processes, or software in the United States. For manufacturers, this can result in significant tax savings.
Federal Benefits
Up to 10% of qualifying R&D expenses can be claimed as a federal tax credit, reducing your tax liability dollar-for-dollar.
State Benefits
Many states offer additional R&D tax credits, which can be claimed alongside federal credits for even greater savings.
Carryforward
Unused R&D credits can be carried forward for up to 20 years, providing long-term tax benefits for your manufacturing business.
The Four-Part Test for R&D Activities
To qualify for the R&D tax credit, activities must meet these four criteria:
Permitted Purpose
Activities must relate to developing or improving functionality, performance, reliability, or quality of a product, process, software, technique, formula, or invention.
Technological in Nature
Activities must rely on principles of physical sciences, engineering, or computer science.
Elimination of Uncertainty
Activities must be intended to eliminate uncertainty regarding the development or improvement of a product or process.
Process of Experimentation
Activities must involve evaluating alternatives through modeling, simulation, systematic trial and error, or other methods.
R&D Credit Calculator
Estimate your potential R&D tax credits based on your qualifying research expenses.
Calculate CreditsDocumentation Templates
Download our R&D documentation templates to help track and document your qualifying activities.
Download TemplatesFree R&D Assessment
Schedule a free assessment with our R&D tax specialists to identify your qualifying activities.
Schedule AssessmentReady to Claim Your R&D Tax Credits?
Our team of manufacturing R&D tax specialists is ready to help you identify, document, and claim the maximum credits available for your innovative activities.
Contact Our R&D Tax Team