Research and Development Tax Incentives for Job Shops
Today’s job shops may not realize that their activities may entitle them to generous research and development (R&D) tax incentives, and even if they do, the traditional notions of R&D may cause them to limit qualified research expenditures to activities associated with invention or new product development. Many job shops, however, conduct extensive activities to design and develop the manufacturing processes themselves to achieve specific project requirements or to stay ahead of competitors in the marketplace. All these activities may require time and money both in the engineering department and on the production floor itself, which may be captured as qualified research expenditures leading to significant tax benefits. If you think you have to be a large, public corporation developing products and inventions to be conducting qualified activities as defined by the Internal Revenue Code, think again.
If your company has recently introduced new or improved products or processes, there is a strong chance that you could benefit from an R&D Tax Credit study. Let alliantgroup’s job shop experts help you claim the credits that you deserve!
Examples of innovations eligible for R&D tax incentives include the following:
- Innovative product development using computer-aided design tools
- Developing second-generation or improved products
- Tooling and equipment fixture design and development
- Developing unique computer numerical control programs
- Developing custom alloys and manufacturing processes
- Designing innovative manufacturing equipment
- Prototyping and three-dimensional solid modeling
- Designing innovative cellular manufacturing processes
- Scrapping projects due to technical uncertainties
- Testing and stress analysis
alliantgroup’s Manufacturing Industry Specialization Team
In order to better serve manufacturers of all kinds, including job shops, alliantgroup has developed an Industry Specialization Program that focuses on the qualification and quantification of R&D tax benefits for companies operating in the diverse areas that make up the manufacturing industry. alliantgroup’s Manufacturing Industry Specialization Team employs several individuals who have educational backgrounds and practical experience within the disciplines of manufacturing engineering, industrial engineering, mechanical engineering, electrical engineering, and metallurgy. This group has qualified and quantified credits for firms ranging from small machine shops to large, multi-national, publicly traded companies.