Large engineering firms that implement and develop new or improved products or processes, as well as small fabrication shops that develop and design custom products often overlook substantial opportunity for R&D tax credit programs. With supply expenditures being eligible for inclusion towards the credit, the cost of material associated with these projects can be claimed as an R&D expense, whether the development involves an internal company project or the designing of a prototype mold for a client. Let TaxIncennovations help you get onto the path to valuable R&D tax credits for your company today!

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Supply costs can also be captured towards the credit in addition to identifying employees involved in the design of improved or new products or processes.  The cost of material associated with these projects can be claimed as an R&D expense whether you are developing an internal project for the company or you are designing a prototype mold for a client.

 

Examples of qualifying employee activities associated with manufacturing industry include the following but are not limited to:

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• Design and testing of prototypes

• PPAP activities on new designs

• Development and design of CNC programs

• Development and design of new or improved products

• Development and design of new or improved tooling and fixtures

• Development and design of new or improved equipment for the manufacturing process

• Development of manufacturing process improvements, including continuous improvements

• Testing and quality assurance of new or existing products and processes to meet client requirement

 

Examples of supply costs associated with manufacturing industry include the following but are not limited to:

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• New or improved tooling and fixtures

• Material cost for internal R&D projects

• Custom project and prototype material cost

• Equipment for new or improved manufacturing processes